The Chinese seamless pipe market has remained stable up to now as billet prices were relatively firm. However, sales volumes are thin due to weak market demand. Market players expect to see a seamless pipe price reduction in the coming weeks caused by sluggish demand in the domestic and export markets and by softer billet prices. In particular, Chinese steel giant Baosteel has recently released its ex-works price policy for July deliveries, cutting most of its product prices by RMB 100-500/mt due to the weak market trend on the back of the unimpressive performance of industries like auto and machinery in the past few months. The international steel market also presents a weak trend due to the summer holidays in Europe and America, which have resulted in a decrease in the number of export orders.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,900-5,950/mt ($910-920/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, are at around RMB 6,600-6,800/mt ($1,020-1,050/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-8" grade B material according to ASTM A106/ASTM A53 are on average at $880-1,070/mt FOB, while seamless pipes made to API 5L are quoted at $1,020-1,150/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,200-1,250/mt FOB, while quotations for 6"-8" casing are at $1,100-1,150/mt FOB.