The downward trend in the Chinese seamless pipe market has continued amid slack business activity from both local and foreign customers. Over the past two weeks, domestic mills' prices of seamless pipes have declined by RMB 30-50/mt ($5-8/mt), while local stockists have cut their offers by RMB 50-100/mt ($8-16/mt). Export offers of seamless pipes from China have declined by a maximum of $20/mt over the same period. Although prices for feedstock material moved up in China after the National Day Holiday, prices for seamless pipe cannot rise without support from buyers, but may stabilize in the coming period. The seamless pipe market in China is unlikely to show a meaningful improvement in the short run as market players still suffer pressure from tight liquidity, weak downstream demand and rising inventories.
Domestic prices of 4"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 3,900-4,400/mt ($637-719/mt) ex-works, including 17 percent VAT.
Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,350-3,650/mt ($547-596/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,250-3,550/mt ($531-580/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" Sch40 grade B seamless pipes according to ASTM A106/API 5L are on average at $560-580/mt FOB on theoretical weight basis.
$1 = RMB 6.14