Import seamless pipe prices continue to rise in UAE despite slack buying activity

Import seamless pipe quotations have continued to surge in the UAE market in line with global steel prices. However, buying activity in the seamless pipe market of the UAE is still quite low and traders are unwilling to accept the continuing price increases. In particular, Chinese suppliers have lifted their seamless pipe prices for the UAE by $30-50/mt over the past month. Seamless pipe prices from Ukrainian producers have gone up by $150/mt, while import offers of Russian seamless pipes have increased by $170-230/mt over the period under review. Seamless pipe prices from Romania and the Czech Republic have surged by $120-185/mt over the period in question. Seamless pipe offers from top-tier producers from Japan (Sumitomo) and Italy (Tenaris) have increased by $300-390/mt over the past month. Market sources expect the current upward price trend will continue due to the positive market outlook and rising raw material costs. Seamless pipe consumption in the United Arab Emirates is expected to increase this year, helped by demand from the oil and gas industry. The UAE awarded $39 billion worth of contracts in 2010 in energy, infrastructure and building construction, and this is expected to boost steel demand in the country.
 
Offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local UAE market at $1,000-1,100/mt C&F.
 
Quotations of Ukrainian (Interpipe) seamless pipes 2"-12" grade B made to ASTM A106/API 5L are at $1,200-1,250/mt C&F. Offers of similar seamless pipes with 2"-8" diameter from Russia are being given to the UAE at around $1,150-1,250/mt C&F depending on the producer.
 
Seamless pipes from Romania (ArcelorMittal) 3"-8" grade B made to API 5L are quoted at around $1,400-1,450/mt C&F Dubai, while 12"-14" seamless pipes are at $1,450-1,500/mt C&F.
 
Offers of 3"-10" seamless pipes from the Czech Republic (ArcelorMittal) are being given to the UAE at $1,400-1,460/mt C&F, while 1"-1 ½" seamless pipes are at $1,475-1,600/mt C&F.
 
Italian seamless pipes from Tenaris and Japanese seamless pipes from Sumitomo 2"-6" grade B made to ASTM A106/API 5L are being quoted to the UAE at $1,650-1,750/mt C&F, while 8"-10" seamless pipes are at $1,770-1,890/mt C&F.
 
Quotations of 24" seamless pipes of grade B made to API 5L from France and Germany (V&M) are at $2,540-2,600/mt C&F.