Conditions in the Chinese seamless pipe market remain difficult. Domestic prices for Chinese seamless pipes have been stable over the past two weeks amid scarce buying interest and the continuing sluggishness of the domestic market after the week-long National Day holiday. Export quotations from most Chinese pipe producers have remained unchanged, while bigger producers have cut their export offers by around $20/mt over the past two weeks amid slack demand from overseas buyers. Most market players believe that Chinese suppliers may cut their seamless pipe prices in the coming period given the significant oversupply in China and amid expectations of a seasonal decrease in business activity.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,300/mt ($995-1,028/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 4,900-5,300/mt ($800-865/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,100-4,300/mt ($670-702/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 $740-800/mt FOB, while offers from big producers may reach $850-880/mt FOB.
$1 = RMB 6.12