Slower welded pipe demand in Saudi Arabia due to Ramadan

Thursday, 17 July 2014 15:40:01 (GMT+3)   |  
       

Despite generally high welded pipe consumption levels, demand for welded pipes has slowed down in Saudi Arabia over the past month due to reduced working hours during the month of Ramadan. Over the past month, domestic and export quotations of welded pipes from Saudi manufacturers have remained unchanged as sales are not expected to improve even if prices are reduced further. However, market players are very optimistic about the prospects for the post-Ramadan period, when major infrastructure developments and real estate investments may contribute to the buoyancy of the local welded pipe market.

Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-10" welded steel pipes grade B as per API 5L with plain ends at around $930-950/mt ex-works (here and below on theoretical weight basis). Current offers from Saudi Arabian commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are being given to the domestic market at $840-860/mt delivered.

Export quotations from Saudi Arabia of 6"-10" welded steel pipes grade B made to API 5L from quality producers are at $970-1,000/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $865-890/mt FOB.

Import offers of Chinese welded pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at around $650-670/mt CFR, compared to $650-680/mt CFR one month ago.


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