Business activity in China's seamless pipe market has slackened over the past two weeks due to the approach of the Spring Festival/Chinese New Year holiday (February 9-17), while foreign customers continue to show low interest in Chinese material. In such market conditions, Chinese seamless pipe producers have been keeping their offers unchanged.
Market players believe that during the holiday quotations of Chinese seamless pipes will remain at the current levels. However, after the holiday an upward trend may be witnessed on the back of anticipated stronger buying activity from both local and foreign consumers.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-5,950/mt ($921-945/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 4,900-5,200/mt ($778-826/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,450-4,650/mt ($707-738/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-8" Sch 40 grade B material according to ASTM A106/API 5L are on average at $800-860/mt FOB. Export quotations of 2"-12" seamless pipes of grade B as per ASTM A106/API 5L from big producers are at around $920-950/mt FOB.