Offers of seamless pipes from Chinese manufacturers have fluctuated over the past two weeks due to the unstable market situation. While some producers have tried to get new orders by reducing prices, other suppliers have sought to increase their prices slightly given the higher production costs. Over the past two weeks domestic prices for Chinese seamless pipes have decreased by RMB 200-300/mt ($30-40/mt). At the same time, export quotations of seamless pipes from China have increased by $10-20/mt over the period under review due to currency fluctuations and the weakness of the dollar against the RMB. The seamless pipe market in China in the remaining months of 2010 will likely remain relatively sluggish as it enters the winter season. Affected by high raw material prices, relatively high product stockpiles and a decline in consumption during the winter season, steel product prices will continue to show small fluctuations, but are likely to remain relatively stable. There is little chance of a big revival for seamless pipe exports from China, given the protectionism in foreign markets, tight competition and the stronger Chinese currency.
Chinese domestic prices of seamless pipes, 2"-8" grade B according to ASTM A106 or GB/8163, are varying at around RMB 5,600-5,800/mt ($840-870/mt) ex-works, including 17 percent VAT.
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 $840-920/mt FOB. Export quotations of 1" seamless pipes of grade B made to ASTM A106 are at $920-1,030/mt FOB, while prices of ½"-3/4" pipes are at $1,000-1,210/mt FOB.
Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $940-1,020/mt FOB, while quotations for 6"-8" casing are at $900-970/mt FOB.