Market players say the market in Saudi Arabia is now more positive due to the many projects being offered or executed. In particular, Saudi Arabia is starting up a large-scale program of housing construction in the current period. Welded pipe producers expect to see a dramatic upturn in demand from the beginning of next year.
Saudi Arabian sources expect the current upward price trend will continue until August when Ramadan starts, and that the market will then become fairly quiet. As prices for flats continue to move up in Saudi Arabia, it is possible that welded pipe prices will increase by around $20/mt in the coming month.
Current offers from Saudi Arabia's commercial producers for 6"-16" sizes, grade B, as per ASTM A53/API 5L are at $670-720/mt ex-works (here and below on a theoretical weight basis). 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 $750-800/mt ex-works. Export quotations of 6"-16" welded steel pipes of grade B made to API 5L from quality producers are at $800-850/mt FOB.
Most offers of ex-India ERW pipes of 1"-6" sizes are being given to the Saudi market at on average $770-800/mt C&F.
Import prices for ex-China welded steel pipes of 2"-10" grade B according to ASTM A53/API 5L are about $710-750/mt C&F.