There have not been any significant changes in the Chinese seamless pipe market over the past two weeks against a background of stable quotations for round billet. Domestic and export quotations have remained at the same levels as two weeks ago. In addition, the Chinese government's announcement of its intention to maintain a loose monetary policy has also helped to stabilize the market. Nevertheless, with the end of the year drawing nearer, it will be more difficult for customers to obtain loans in December, which may have a negative effect on the market.
Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at the previous level, at around RMB 4,700-5,000/mt ($690-730/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 5,000-5,500/mt ($730-805/mt) ex-works. Chinese domestic prices for casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 4,700-5,000/mt ($690-730/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-10" grade B material according to ASTM A106/API 5L are on average at $680-710/mt FOB, while 1"-1 ½" pipe sizes are at $720/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $750-770/mt FOB, while quotations for 6"-8" casing are at $730-750/mt FOB.
China's seamless steel pipe exports have been heavily impacted by the EU and US's antidumping cases. The export volume for the products in question in October reached 280,300 mt, down 398,900 mt or 58.74 percent year on year. Total January-October exports reached 2.6425 million mt, down 2.1869 million mt or 45.28 percent. Nevertheless, in the domestic market demand indicated an improvement, which allowed an increase in seamless pipe production. In October the output figure was 1.94 million mt, 4.4 percent higher than in October 2008 and 9.6 percent higher than in September this year. Seamless pipe production in China in January-October this year totaled 17.4 million mt, up 0.8 percent year on year.