After the Spring Festival/ Lunar New Year holiday in China, demand for seamless pipes in the Chinese domestic market has started to recover gradually amid better end-user demand, while the buying activity of foreign customers remains low. Domestic quotations of Chinese seamless pipes have increased by RMB 50-100/mt ($8-17/mt) during the past two weeks, while export offers have moved up by $10-20/mt.
Market participants believe trading activity will accelerate in March. Chinese seamless pipe producers will likely continue to raise prices supported by higher raw material costs and positive expectations for the market in the coming period.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,900-6,000/mt ($938-954/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 5,000-5,300/mt ($795-842/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,500-4,700/mt ($715-747/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-8" Sch 40 grade B seamless pipes according to ASTM A106/API 5L are on average at $820-860/mt FOB. Export quotations of 2"-12" seamless pipes of grade B as per ASTM A106/API 5L from big producers are at around $920-960/mt FOB.