Over the past two weeks most Chinese pipe mills have lowered their domestic quotations, by an average of RMB 200-300/mt ($30-45/mt), due to weak market demand. Export prices have declined by $10-30/mt during the period in question due to the low level of interest from foreign customers and also due to trade restrictions. However, the price reductions are not likely to have any big impact on the market and sales volumes are not expected to show any significant increase. As round billet prices remain stable, fluctuations in seamless pipe prices are unlikely to continue for long.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at around RMB 4,250-4,500/mt ($620-660/mt) ex-works, compared to RMB 4,500-4,800/mt ($660-700/mt) ex-works two weeks ago. These prices for the local market include 17 percent VAT and are on actual weight basis. Domestic quotations of tubing pipes of 2"-4" size, of J55 strength group as per API 5CT, plain-ended, are at about RMB 4,600-5,000/mt ($675-730/mt) ex-works. Chinese domestic prices of casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 4,500-4,700/mt ($660-690/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $640-670/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $700-750/mt FOB, while quotations for 6"-8" casing are at $690-740/mt FOB, both for November production material.