Activity remains slow in China’s seamless pipe market

The local Chinese seamless pipe market continues to run slowly amid the country's continuing economic growth slowdown and dim business activity, while demand from overseas buyers shows no obvious signs of being released. However, Chinese seamless pipe producers have refused to provide any discounts for local buyers considering their own firm costs, while Chinese traders have cut their prices for local customers by RMB 50-200/mt ($8-32/mt) over the past two weeks. Over the same period, China's seamless pipe export offers have declined by a maximum of $15/mt following the weakness in the domestic market and due to slack demand from foreign buyers. Market players believe it will be difficult for the market to see an improvement in the coming two weeks as demand from consuming industries remains unreleased.
 
Domestic prices of 4"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 3,830-4,150/mt ($617-668/mt) ex-works, including 17 percent VAT.
 
Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,150-3,250/mt ($507-523/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering similar pipes at around RMB 3,100-3,400/mt ($499-548/mt) ex-warehouse.
 
Current export quotations from most Chinese manufacturers for 2"-6" Sch40 grade B seamless pipes according to ASTM A106/API 5L are on average at $510-535/mt FOB.
 
$1 = RMB 6.21