Chinese seamless pipe prices likely to remain stable in short term

Demand for Chinese seamless pipes is still weak from both local and foreign customers. Despite a slight decrease in round billet prices, domestic and export offers of seamless pipes from China have remained almost unchanged over the past two weeks on the back of still high production costs. In particular, quotations of round billets are at the level of RMB 5,150-5,250/mt ($805-820/mt) ex-works with 17 percent VAT, compared to RMB 5,200-5,250/mt ($815-820/mt) ex-works two weeks ago. Due to the market uncertainty, a wait-and-see atmosphere predominates in the market. Although market participants do not expect a significant increase in sales soon, they hope for a slight growth in demand this month, which is a traditional peak season for seamless pipes. However, in the coming short-term period, seamless pipe quotations in China will likely remain unchanged.
 
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,800-5,900/mt ($910-920/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 ($1,015-1,040/mt) ex-works.
 
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 $950-1,000/mt FOB, while 10"-24" seamless pipes are at about $1,000-1,100/mt FOB. Chinese 2"-8" seamless pipes made to ASTM A106/ASTM A53/API 5L are quoted at around $980-1,030/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.