Domestic demand for Chinese seamless pipes has remained slack due to the hot and rainy weather that has restricted construction work in the country. In addition, overseas demand is affected by the sluggishness of the global economy. Meanwhile, over the past two weeks domestic prices of Chinese seamless pipes have decreased by a maximum of RMB 100/mt ($10-15/mt), while export quotations have remained unchanged. Market participants believe prices for Chinese seamless pipes may continue their fluctuations at low levels in the coming period as there are no signs of a recovery in demand from either local or foreign consumers. Buying activity is expected to remain slow during the summer lull.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,000-5,100/mt ($790-810/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,100/mt ($950-965/mt) ex-works.
Current export offers of seamless pipes from most Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $820-850/mt FOB, while quotations of 16" pipes are at $890-920/mt FOB. Export offers of 3"-12" seamless pipes of grade 6 as per ASTM A333 are at $880-950/mt FOB. Export quotations of 2"-14" seamless pipes made to ASTM A106 of premium quality from stocks are at about $740-760/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,000-1,030/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,050-1,080/mt FOB.