Chinese domestic seamless pipe prices have remained relatively firm over the past two weeks, while transactions have continued to be scarce amid downbeat sentiment. For export, some seamless pipe offers have moved down by $10-20/mt due to weaker sentiment and stagnant demand, although a few exporters have kept their offers stable. The prospects for the seamless pipe market in China do not appear very bright for the near future because of slack demand in major export sales outlets and the weakening of demand in the domestic market. Besides, mounting pressure to bring in cash towards the end of the third quarter, overcapacity, and unstable positions of import iron ore suppliers are factors adding to the overall bearish sentiment.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,300/mt ($992-1,024/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 4,900-5,300/mt ($797-862/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,100-4,300/mt ($666-699/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $740-800/mt FOB, while offers from big producers may reach $880-900/mt FOB.