Because of rumors that Chinese commercial banks will tighten or even suspend loans to the steel industry, the domestic seamless pipe market in China has fallen strongly over the past two weeks. Domestic quotations of seamless pipes from local producers have decreased by RMB 200-500/mt ($30-75/mt), while export prices have fallen down by $40-100/mt over the period under review. Market insiders have said that, if the rumors are true, some traders may run out of funds in the current situation of high inventories. Also, large numbers of shipments by traders will exert considerable downward pressure on seamless pipe prices.
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 4,800-5,000/mt ($700-730/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 5,100-5,300/mt ($745-775/mt) ex-works. Chinese domestic prices for casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 5,000-5,300/mt ($730-775/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $680-700/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $690-720/mt FOB, while quotations for 6"-8" casing are at $680-720/mt FOB.
SteelOrbis has learned of offers of Chinese seamless pipes with 21.3-26.9 mm diameter and 2.3-3.2 mm wall thickness of steel grade 10 at $880-960/mt FOB.