The Chinese seamless pipe market has seen stability in the past two weeks after attempts of producers to raise prices in July, as transactions saw an obvious slowdown on the back of the price rises. Although quotations of round billets have increased by a maximum of RMB 80/mt ($10/mt) over the past two weeks to RMB 5,150-5,300/mt ($800-820/mt) ex-works with 17 percent VAT, seamless pipe prices have stayed in the previous range on the back of weak demand in the market. Seamless pipe prices are unlikely to go up in the coming short-term period as international market demand will see a further shrinking in August with the slackening of global manufacturing, the summer holidays in Europe and America, and with Ramadan in Middle Eastern countries. The domestic market for seamless pipes in China is also expected to be sluggish due to weak market demand, rising inventory levels and tighter credit curbs. At the same time, Chinese pipe makers are reluctant to drop their offers now, expecting higher raw material prices for September.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,800-5,900/mt ($900-915/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 6,500-6,650/mt ($1,010-1,030/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" Sch 40 and Sch 80 grade B material according to ASTM A106/ASTM A53 are on average at $910-995/mt FOB, while 8"-12" seamless pipes are at about $920-1,030/mt FOB. Chinese 2"-10" seamless pipes made to ASTM A106/ASTM A53/API 5L are quoted at around $980-1,010/mt FOB, 1" seamless pipes are at $1,010-1,030/mt FOB, while 24" pipes are at about $1,040-1,080/mt FOB.
Export quotations for 4 ½"-13 3/8" casing J55 as per API 5CT, plain ends, are at $1,100-1,150/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,150-1,200/mt FOB.