Buying activity in the Saudi Arabian market for welded pipes remains strong thanks to the large number of government-based development projects. However, Saudi pipe makers have been forced to soften their prices under pressure from buyers. Over the past month, domestic quotations of welded pipes have decreased by $20-30/mt amid lower feedstock prices, while export offers have declined by around $50/mt. However, market players do not expect any further price decrease as welded pipe demand in Saudi Arabia is foreseen to keep rising and stay strong in 2012 due to the large number of infrastructure projects.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $1,000-1,020/mt ex-works 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 $920-1,000/mt ex-works on theoretical weight basis.
Export quotations from Saudi Arabia of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $1,000-1,050/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $920-1,000/mt FOB.
Import offers of Chinese welded pipes of 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at around $800-850/mt CFR, compared to $830-850/mt CFR one month ago.