Chinese seamless pipe producers have attempted a price increase citing higher raw material costs. Thus, domestic prices of Chinese seamless pipes have increased by a maximum of RMB 50/mt ($7/mt) over the past two weeks, while export offers have risen by $20-30/mt over the same period. However, buyers remain cautious amid the off-season with tight funds and suspended winter stockpiling. Most market players believe seamless pipe prices in China will not fall back down in the short term, in anticipation of higher demand from foreign buyers after the Christmas and New Year holidays and expected better conditions in the domestic market ahead of China's Spring Festival.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,050-6,250/mt ($989-1,021/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 4,950-5,250/mt ($809-858/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 4,050-4,200/mt ($662-686/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 $750-800/mt FOB, while offers from big producers are still at levels of $850-880/mt FOB.
Export prices for 7"-9 5/8" casing pipes of J55 strength grade, as per API 5CT, plain ends, are at about $850-900/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $900-950/mt FOB.
$1 = RMB 6.11