Demand for Chinese seamless pipes from both local and foreign customers is slack. Nonetheless, Chinese suppliers are in no haste to correct their prices downward, being supported by stable production costs. Domestic mills' prices for seamless pipes in China have remained unchanged over the past two weeks, with market participants generally taking a wait-and-see approach to the market. Meanwhile, traders have reduced their offers for local buyers by around RMB 50-100/mt ($8-17/mt) over the past two weeks in order to spur buying and reduce high stocks. Export quotations from most Chinese pipe producers have not changed over the period under review due to slack demand from overseas buyers. China's seamless pipe market is expected to move on a stable trend in the short run with a possible correction within a narrow range.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,300/mt ($1,002-1,034/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 ($804-870/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,000-4,250/mt ($657-698/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 $850-880/mt FOB.
$1 = RMB 6.09