Due to the downturn in the real estate sector in the UAE, demand for welded pipes is currently not so strong in the domestic market. Domestic prices for locally produced pipes have decreased by $5-10/mt over the past month, also due to lower feedstock prices from foreign suppliers. Prices for Chinese and Indian welded pipes have decreased by a maximum of $20/mt over the period in question. Besides, local buyers prefer to maintain a wait-and-see stance towards the market in order to gain a clearer picture of the price trend. Meanwhile, welded pipe demand is expected to recover at a slow rate in the UAE, but overall expectations are sufficiently bright. Welded pipe consumption in the country may increase as the UAE plans to spend around AED 6 billion ($1.6 billion) on major infrastructure developments across the country by 2016.
UAE domestic prices for locally produced ½"-4" welded pipes with 2-4 mm wall thickness of grade B made to ASTM A53 or BS 1387 are at about $670-700/mt ex-works. Prices are given on theoretical weight basis.
Domestic quotations of 1"-4" welded pipes with 1.5-1.8 mm wall thickness of grade B made to ASTM or BS 1387 are at about $685-720/mt ex-works. Current domestic prices of 1"-4" galvanized ERW pipes with 2-4 mm wall thickness are in the range of $860-880/mt ex-works.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM are being given to the UAE market at about $560-600/mt CFR, $20/mt lower than one month ago.
Indian suppliers are offering ERW pipes, 1"-6" as per BS 1387 (light series), to the UAE at $680-700/mt CFR, a maximum of $20/mt lower than one month ago.