Prices for Chinese seamless pipes have continued to rise over the past two weeks reflecting higher sourcing costs and buoyant domestic and export demand. Thus, domestic quotations have increased by RMB 50-100/mt ($11-18/mt) during the past two weeks, while export offers have moved up by $10-30/mt. However, domestic seamless pipe prices are now tending towards greater stability and Chinese pipe producers are not likely to increase their prices further given softer iron ore prices and expected lower business activity in the domestic market before the Chinese Spring Festival holiday.
It is believed that the Chinese seamless pipe market will follow a stable trend in the coming short-term period.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-5,950/mt ($924-948/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 4,900-5,200/mt ($780-828/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,450-4,650/mt ($709-740/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-8" Sch 40 grade B material according to ASTM A106/API 5L are on average at $800-860/mt FOB. Export quotations of 2"-12" seamless pipes of grade B as per ASTM A106/API 5L from big producers are at around $920-950/mt FOB.