Due to lower oil prices and cutbacks in oil output many oil projects have been suspended in the UAE. As a result, demand for seamless line pipes continues to decline, forcing foreign suppliers to reduce prices in the UAE market. Within the past month offers of Ukrainian seamless pipes have decreased by $50-80/mt for small sizes and by $110-120/mt for bigger sizes. The main pipe producers, from Argentina and Italy (Tenaris), from France and Germany (V&M) and from Japan (Sumitomo), are trying to keep offer prices at a stable level; however, in some cases price decreases have reached $50-100/mt over the past month. Quotations of seamless pipes from China, South Africa and Romania are at the month-ago level. Market insiders do not expect any improvement before October. Until then, the seamless pipe market will remain sluggish in the UAE.
SteelOrbis has learned that Chinese 1"-10" seamless pipes grade B made to API 5L are being offered at $720-780/mt C&F. Offers of similar pipes with larger diameter are being given at $820-850/mt C&F.
Quotations of Ukrainian seamless pipes (Interpipe) 2"-6" grade B made to ASTM A106/API 5L are at $800-820/mt C&F, while 8"-12" pipes are priced at $830-890/mt C&F. Offers of similar pipes with diameter up to 16" from Volzhsky Pipe Plant (TMK Group, Russia) are being made to the UAE at around $800-850/mt C&F.
Indian seamless pipes up to 6" grade B made to ASTM A106/API 5L are offered to the UAE on average at $910-950/mt C&F.
Prices for Romanian seamless pipes (Arcelor Mittal) and South African Iscor's pipes (Arcelor Mittal) 2"-10" grade B made to API 5L are at about $1,100/mt C&F.
Offers of seamless pipes from Argentina 1/2"-3/4" grade B made to ASTM A106/API 5L from Tenaris are being made to the UAE at $2,000/mt C&F, offers of 1"-1 1/2" are at $1,700-1,800/mt C&F, offers of 2"-6" are at $1,550-1,600/mt C&F, offers of 8"-10"pipes are at $1,650-1,700/mt C&F, and 12"-14" pipes are at $1,750-1,800/mt C&F.
Italian seamless pipes (Tenaris) 16" grade B as per ASTM A106/API 5L are offered at $2,000-2,100/mt C&F, 18"-24" pipes are offered at $2,700-2,800/mt C&F, above 24" are at $2,900-3,000/mt C&F.
Quotations of seamless pipes from France and Germany (V&M) and from Japan (Sumitomo) are at the same level as Tenaris' prices.
With local UAE seamless pipe demand remaining weak, the amount of UAE seamless pipe imports has decreased significantly this year. The latest data from the customs statistics show that the total amount of seamless pipe imports into the UAE during the first four months of 2009 was 2,156 mt, representing a sharp drop when compared to the figure of 13,101 mt from the same period of last year.