Despite a slowdown in buying activity in the Chinese domestic seamless pipe market and in export markets during the New Year holidays, Chinese producers have started to raise their quotations amid rising billet costs. Thus, domestic quotations have increased by RMB 50-150/mt ($2-18/mt) over the past two weeks, while export offers have moved up by $10-40/mt. However, overall seamless pipe demand remains weak as it is the off-season while snowy and rainy weather is more widespread. Meanwhile, optimistic expectations for an improvement in demand for seamless pipes in March and April may prompt Chinese mills to push prices up further. The rapid rise in raw material prices has also boosted market expectations for a pick-up in seamless pipe prices after the Chinese Spring Festival.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,700-5,900/mt ($905-937/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 4,800-5,000/mt ($763-794/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,350-4,550/mt ($691-723/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 $770-850/mt FOB, while offers of 16"-24" pipes are at about $800-880/mt FOB. Export quotations of 2"-12" seamless pipes of grade B as per ASTM A106/API 5L from big producers are at around $900-950/mt FOB.