Over the past month the Saudi welded pipe market has continued its downward trend due to the seasonal slowdown in demand. Domestic quotations of welded pipes from commercial manufacturers in Saudi Arabia have decreased by $25-50/mt in the past month, while quality producers have lowered their prices by $60-100/mt in the same period. Export quotations for high quality welded pipes have declined by $50/mt over the past month. Import offers of Chinese welded pipes have gone down by $20-30/mt over the period under review.
Demand for welded pipes from Saudi manufacturers from both the domestic market and Gulf countries has retained its strength to a certain degree because of a number of ongoing projects. However, demand in the summer is slightly slower in the Middle Eastern countries due to the holiday season and also due to the approach of the month of Ramadan. Saudi welded pipe manufacturers hope that demand will start to pick up from November up to the end of the year.
Current offers from Saudi Arabia's commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are at $820-900/mt ex-works (here and below on actual weight basis).
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are currently offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $900-950/mt ex-works.
Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $950-1,000/mt FOB.
Import offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at $750-800/mt C&F.