In spite of sluggish market conditions, bullish sentiments still prevail in the Chinese seamless pipe market amid the upward trend in the raw material segment and expectations for some improvement in demand. Chinese seamless pipe producers have increased their domestic prices by around RMB 100-200/mt ($16-32/mt) over the past month, while export offers have risen by around $20-30/mt. However, demand from both local and foreign buyers remains lackluster.
Market participants believe that seamless pipe prices in China could slide down in the coming period due to a possible rollback in feedstock prices given the instability of the iron ore segment. Meanwhile, demand is unlikely to indicate a significant recovery before the end of the summer.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,300/mt ($988-1,021/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 4,800-5,200/mt ($778-842/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,050-4,300/mt ($656-697/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $750-800/mt FOB, while offers from big producers may reach $880-920/mt FOB.
Export quotations of Chinese 2"-12" seamless pipes of grade B as per ASTM A106 from stocks can be heard at around $700-730/mt FOB.