Demand for seamless pipes has been rather slack in China over the holiday period. Domestic quotations of Chinese seamless pipes are in general at the level of two weeks ago, though in some cases increases of RMB 100-300/mt ($15-45/mt) may be seen due to rising production costs. Although demand is extremely low in foreign markets, export quotations have risen by $10-20/mt over the period of review in line with domestic prices. As billet prices are expected to move on a flat trend in the short term, market players do not foresee a significant rise in seamless pipe prices in the coming weeks, though demand may improve gradually after the New Year holiday.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at their previous range, i.e., at around RMB 4,600-5,100/mt ($675-750/mt) ex-works. These prices for the local market include 17 percent VAT and are on actual weight basis. Domestic quotations of tubing pipes of 2"-4" size, grade J55 as per API 5CT, plain-ended, are at about RMB 5,100-5,500/mt ($750-807/mt) ex-works. Chinese domestic prices for casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 5,000-5,200/mt ($730-760/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-10" grade B material according to ASTM A106/API 5L are on average at $700-730/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $750-780/mt FOB, while quotations for 6"-8" casing are at $730-760/mt FOB.
Exports of seamless pipes from China continue to suffer from trade restrictions in the EU and US. The export volume for the products in question in November totaled 240,565 mt, down 381,714 mt or 61.3 percent year on year. Total exports in the January-November period came to 2.8832 million mt, down 2.5674 million mt or 47.1 percent.