Buying activity is improving slowly in the Chinese seamless pipe market, while export demand remains weak. Chinese seamless pipe producers have continued to push their offers up, prompted mainly by firmer prices for round billets. Over the past two weeks, domestic prices of Chinese seamless pipes have increased by around RMB 50/mt ($5-10/mt), while export quotations have gone up by about $20/mt. It is predicted that the seamless pipe market in China may increase its slow gains in the near term on the back of higher raw material costs and stronger demand along with warmer weather conditions. However, the overall high inventories of seamless pipes will prevent any sharp increases in seamless pipe prices.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,350-5,400/mt ($845-855/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,300-6,400/mt ($995-1,015/mt) ex-works.
Current export offers of seamless pipes from most Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $880-950/mt FOB, while offers from bigger mills are at about $1,000-1,020/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,020-1,050/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,080-1,100/mt FOB.