Chinese seamless pipes have been encountering sluggish demand in all markets. Domestic seamless pipe prices of producers in China have dropped by a maximum of RMB 100/mt ($15/mt) over the past two weeks amid poor demand and falling prices for import iron ore and domestic feedstock. Meanwhile, Chinese seamless pipe producers' export quotations have declined by a maximum of $10/mt over the same period. Chinese traders have cut their offers for local buyers by RMB 100-150/mt ($16-24/mt) over the period under review. Market participants believe the situation in the seamless pipe segment in China may continue to deteriorate at least until early April considering insufficient demand, inventory surpluses and the bearish short-term outlook.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,000/mt ($923-955/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 4,900-5,300/mt ($780-843/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,400-4,550/mt ($700-724/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" Sch 40 grade B seamless pipes according to ASTM A106/API 5L are on average at $820-850/mt FOB, while prices of 14"-24" pipes are at $840-880/mt FOB.
Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks can be heard at around $750-800/mt FOB.
SteelOrbis has also heard that offers of Chinese 7"-9 5/8" casing pipes of L80 made to API 5CT, BTC are at $1,050/mt FOB, with 13 3/8" casing pipes of K55 grade at $1,015-1,020/mt FOB, and 20" casing pipes of J55 grade at $1,500/mt FOB.