Feedstock costs push up Saudi Arabian welded steel pipe prices

Rising feedstock prices in Saudi Arabia have pushed up welded pipe quotations in the country. Saudi welded pipe makers have increased their domestic quotations of ERW pipes by $50-70/mt over the past month, while export prices have risen by $80/mt. Chinese welded pipe suppliers have raised their offers for Saudi customers by a maximum of $40/mt over the one-month period under review. Welded pipe makers in Saudi Arabia are expected to continue to raise their prices as offers of flat steel products in the country are expected to increase further due to several factors, including the floods in Australia and strong demand. The general outlook for the Saudi welded pipe market is positive against the backdrop of soaring petrochemical prices and the ongoing momentum in consumer activity. Demand for welded pipes in Saudi Arabia is predicted to remain strong due to high number of construction projects planned for 2011.
 
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are still offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $990-1,030/mt ex-works.
 
Export quotations from Saudi Arabia of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $1,040-1,080/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 around $800-890/mt C&F.