Seamless pipe prices in China have continued to decline due to extremely weak demand. Over the past two weeks domestic quotations of seamless pipes have sunk by RMB 200/mt ($30-35/mt), while export prices have fallen by $20-30/mt. Local and foreign buyers are still cautious about purchasing amid falling pipe prices and uncertainties in the international market. Market insiders report that concerns about a possible economic recession aroused by the European debt crisis, the seasonal lull in the international market, the strong waiting sentiment in the property market at home, high inventory levels and continued antidumping threats have all combined to contribute to the fall of seamless pipe prices. Therefore, it is expected that the seamless pipe market downturn will last quite some time as the adverse factors are unlikely to diminish in the short term. Nevertheless, taking into consideration the current stability of round billet prices, there will be a limited space for downward price correction in the days ahead.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are varying at around RMB 5,300-5,700/mt ($775-830/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 $780-840/mt FOB, ¾"-1" pipes are at $870-900/mt FOB, while ¼"-3/8" pipes are at around $1,180-1,200/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 $870-980/mt FOB.
Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,000-1,050/mt FOB, while quotations for 6"-8" casing are at $900-980/mt FOB.
In May this year China produced 2.15 million mt of seamless pipes, 23.7 percent higher than in May 2009. Total production for the first five months of this year was 9.55 million mt, up 14.2 percent over the same period last year. With additional new capacity, market players expect that the current year will be tough, with no improvement in the domestic and export markets.