Chinese suppliers keep seamless pipe prices steady

Over the past two weeks, seamless pipe prices in China have not changed significantly, although the overall steel market has shown signs of recovery. Domestic quotations of Chinese seamless pipes have increased by a maximum of RMB 50/mt ($15/mt, currency fluctuations taken into account) over the past two weeks. Export offers of Chinese seamless pipes, on the whole, have remained within the previous price range, with only the lower end moving up by $20/mt. Meanwhile, market sources report improving demand from foreign buyers, while the local market is still weak. Market players expect to see further price growth at a slow rate, due to high input costs and expected power cuts in some provinces. However, some steel traders are cautious as regards the future trend of the market, guarding against possible risks from excessive rapidity of price rises. In addition, the expectation of limited production due to power restrictions is generally not expected to become a reality until the end of June, the real peak season for power consumption.
 
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,900-5,950/mt ($910-915/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 6,550-7,000/mt ($1,010-1,080/mt) ex-works.
 
Current export offers of seamless pipes from Chinese manufacturers for 1"-8" grade B material according to ASTM A106/ASTM A53 are on average at $1,020-1,070/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $1,220-1,250/mt FOB, while quotations for 6"-8" casing are at $1,120-1,150/mt FOB.
 
According to the China Iron and Steel Association (CISA), China exported 328,895 mt of seamless pipes in March, indicating an increase of 11.7 percent from the February level and up 18 percent year on year. Exports of seamless pipes from China in the first three months of 2011 reached 981,236 mt, up 28 percent on the corresponding period of 2010.