Over the past month, the Saudi welded pipe market has continued its downward trend as demand still lacks sufficient strength due to the seasonal slowdown and the weakening of flat steel quotations. Domestic quotations of welded pipes from quality Saudi manufacturers have decreased by a maximum of $40/mt in the past month, while export quotations have declined by $20/mt over the same period. Domestic offers from Saudi Arabia's commercial producers have stayed unchanged over the past month. Despite a temporary slowdown, the prospects for the welded pipe market in Saudi Arabia continue to be positive as government investment in affordable housing and infrastructure is expected to remain robust. Meanwhile, demand for Saudi welded pipes from overseas buyers is also expected to strengthen. In particular, Saudi Steel Pipe (SS Pipe) company has announced that it has won a SAR 50 million ($13.3 million) contract to supply welded steel pipes to Egypt's Petroleum Pipe Group.
Current offers from Saudi Arabia's commercial producers for 1"-4" ERW pipes grade A, B as per ASTM A53 are at $700-720/mt ex-works.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-16" ERW bare pipes of grade B as per API 5L PSL 2 at around $750-800/mt ex-works.
Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $800-840/mt FOB.
Import offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at $500-520/mt C&F, unchanged compared to one month ago level.