Demand remains slack in UAE seamless pipe market

Friday, 25 September 2009 15:42:28 (GMT+3)   |  
       

Despite the conclusion of the end-of-Ramadan holidays in Middle Eastern countries, the seamless pipe market in the UAE has remained sluggish. Over the past month there has not been any price increase from foreign suppliers, with seamless pipe offers from Ukraine, Russia, Romania and South Africa all standing at their previous levels. During the period under review, quotations of Chinese seamless pipes have declined by $30-45/mt while Japanese and Argentinian producers have decreased their offer prices by $50-100/mt. Traders in the UAE report reduced profits as the global recession has cut demand for petrochemicals and steel products. Foreign suppliers of seamless pipes will probably try to increase quotations in the hope of sparking a revival in the market; however, as demand has not yet recovered, it will not be easy to raise prices. Nevertheless, an improved market situation is expected for the post-Ramadan period, though the anticipated recovery is likely to be very slow.

Import offers of Chinese seamless pipes 1"-8" grade B made to ASTM A106/API 5L are being given to the local UAE market at $730-770/mt C&F.

Quotations of Ukrainian (Interpipe) seamless pipes 2"-8" grade B made to ASTM A106/API 5L are at $920-950/mt C&F, while 10"-14" pipes are priced at around $980-1,050/mt C&F. Offers of similar pipes with diameters up to 8" from Volzhsky Pipe Plant (part of Russian-based TMK Group) are being given to the UAE at around $950-1,000/mt C&F, while 10"-16" pipes are at the range of $1,050-1,100/mt C&F.

ArcelorMittal's prices for seamless pipes, 2"-10" grade B made to API 5L, from its Romanian and South African facilities are standing at about $1,050/mt C&F UAE.

Offers of Argentinian (Tenaris) seamless pipes ½" grade B made to ASTM A106/API 5L to the UAE are at $1,900/mt C&F, ¾" pipes are at $1,800/mt C&F, 1" pipes are at $1,750/mt C&F, 2"-6" pipes are at $1,250/mt C&F, while 10" pipes are at $1,350/mt C&F.

Italian seamless pipes from Tenaris 12" grade B made to ASTM A106/API 5L are quoted to the UAE at $1,375/mt C&F, 14" pipes are at around $1,450/mt C&F, 16" pipes are at $1,650/mt C&F, 18" pipes are at $2,400/mt C&F, while 24" pipes are at about $2,500/mt C&F.

Prices for Japanese (Sumitomo) seamless pipes 2"-6" grade B made to ASTM A106/API 5L for the UAE are standing at about $1,250/mt C&F, with 10"-12" pipes at the level of $1,350-1,375/mt C&F.

Quotations of 2"-6" seamless pipes grade B as per ASTM A106/API 5L to the UAE from France and Germany (V&M) are at $1,350/mt C&F, while 10"-12" pipes are at around $1,450-1,475/mt C&F.


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