Seamless pipe prices from Chinese producers have remained almost unchanged over the past two weeks due to quite low business activity in both the domestic and foreign markets in view of the New Year and Christmas holidays. Meanwhile, round billet prices remain firm in China as prices of raw materials, like iron ore, coking coal and coke, have continued to rise. In particular, locally produced round billets are currently being offered to the Chinese market at around RMB 5,000-5,300/mt ($755-800/mt), up by a maximum of RMB 100/mt from the end of December. As a result, seamless pipe prices are unlikely to decrease in the coming period. At the same time, local demand is expected to be weak until February due to the difficult weather conditions in the country and the coming Spring Festival. Low buying activity will mean a lack of support any significant price increase. Thus, seamless pipe prices will likely stay at their current high levels during January. Market participants expect seamless pipe prices to increase only after the Chinese Spring Festival on the back of rising raw material costs and better market conditions.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,600-5,650/mt ($845-850/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 6,000-6,300/mt ($905-950/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-12" grade B material according to ASTM A106/ASTM A53/API 5L are on average at $910-990/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,100-1,130/mt FOB, while quotations for 6"-8" casing are at $1,000-1,050/mt FOB.