During the week ending June 3, average Chinese steel pipe export offer prices have moved on an upward trend. At present, export offers for welded pipe given by Chinese suppliers are in the range of $540-550/mt FOB, increasing by $5/mt on average compared to May 27, while export offers for API 5L seamless pipe given by Chinese suppliers are at $570-580/mt FOB, for September shipment, moving up by $20/mt on average compared to May 27.
| Product name | Quality | Spec. | Price ($/mt) FOB | Weekly change ($/mt) |
| API 5L seamless pipe | Gr.B | 2’’-6’’ Std | 575 | +20 |
| Seamless pipe, casing (hot rolled forming) | J55 | 3’’-8’’ Std | 580 | +25 |
| Seamless pipe, tubing (cold drawn forming) | ST37 | < 3’’ Std | 680 | +10 |
| Welded pipes | Gr.B | 2’’-6’’ Std | 545 | +5 |
In the given week, the production operations of Iranian steel pipe producers have been at a standstill due to the ongoing war in the Middle East, while demand from Kuwait has been strong, resulting in increasing steel pipe exports from Egypt and Turkey. The production issues in Iran have positively affected China’s seamless pipe exports to the Middle East. However, the hot summer weather and the uncertainties in the global market may slacken the demand for steel pipes.
During the given week, steel pipe prices in the Chinese domestic market have fluctuated within a limited range amid the traditional off-season in June. Meanwhile, the rainy weather and high temperatures have exerted a negative impact on the demand for steel pipes. Cautious sentiments have prevailed among market players, while firm raw material prices have bolstered market sentiments to a certain degree. It is thought that steel pipe prices in the Chinese domestic market may move sideways in the coming week.
As of June 3, HRC futures at Shanghai Futures Exchange are standing at RMB 3,386/mt ($492/mt), increasing by RMB 23/mt ($3.4/mt) or 0.7 percent since May 27, while decreasing by 0.35 percent compared to the previous trading day, June 2.
$1 = RMB 6.8184
