Prices for Chinese seamless pipes have increased a little over the past two weeks due to the more active market and some increases in round billet quotations. Chinese traders think that seamless pipe prices are very close to the bottom and do not expect any further significant price decreases because of the slight rise in round billets costs. In this context, market players report increased buying activity in the Chinese market. But it seems that this is just a temporary surge of demand from Chinese traders. Over the past two weeks domestic quotations of seamless pipes have increased by RMB 200-300/mt ($35-55/mt), while export prices have risen by $10-30/mt. Adverse effects resulting from the tightening of liquidity are increasing, possibly augmenting financial costs for players in the steel industry. The seamless pipe market in China suffers from increasing supply and ebbing demand. The biggest uncertainty comes from the property sector and demand growth in other sectors is also slowing down. It is expected that the Chinese seamless pipe market will at least stabilize in the coming weeks.
Current round billet prices in China are at around RMB 4,500-4,700/mt ($660-690/mt) ex-works with 17 percent VAT. Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are varying at around RMB 5,500-6,000/mt ($810-885/mt) ex-works, including 17 percent VAT.
Сurrent export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $810-850/mt FOB. At the same time, some suppliers (in particular, Chengdu Heyi Steel Tube Industrial Co., Ltd., Changzhou Mingyu Steel Tube Co., Ltd) are offering 1"-14" seamless pipes of grade B made to ASTM A106 at $900-930/mt FOB. SteelOrbis has learned of offers of seamless pipes with diameters of 26.9-42.4 mm of steel grade 37.0 made to DIN 2448/1629 at about $870-970/mt FOB.
Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,050-1,080/mt FOB, while quotations for 6"-8" casing are at $960-1000/mt FOB.
China's seamless pipe exports increased slightly in May. According to the China Iron and Steel Association (CISA), in May China exported 326,970 mt of seamless pipes, indicating an increase of 17.9 percent from the April level and up 55.3 percent year on year. Exports of seamless pipes from China for the first five months of this year reached 1,370,510 mt, up 1.5 percent on the corresponding period of last year. Chinese suppliers report that exports of seamless pipes increased in May thanks to the development of the Middle Eastern, African and South American markets.