Business activity has been dull in the Chinese market for seamless pipes over the past two weeks. Some seamless pipe mills in China have cut their domestic prices by a maximum of RMB 50/mt ($8/mt) over the past two weeks due to the ongoing weakness of demand, while Chinese traders have left their offers unchanged. Export offers of seamless pipes have remained mostly unchanged over the period under review amid stable feedstock prices. The market prospects for the coming period are not bright especially as buying activity may weaken further in the winter period and place additional pressure on mills. Also, liquidity will tighten up with the end of the year drawing near, and it is predicted that the seamless pipe market will fluctuate on a soft trend.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,200/mt ($1,002-1,018/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 ($804-858/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are 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 $730-780/mt FOB, while offers from big producers may reach $850/mt FOB.
Export prices for 7"-9 5/8" casing pipes of J55 strength grade, as per API 5CT, plain ends, are about $850-870/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $900-920/mt FOB.
$1 = RMB 6.09