An upward trend has started to prevail in the import segment of the seamless pipe market in the UAE. Market sources state that seamless pipe prices have started going up due to high raw material costs and not due to any additional demand for the product. Traders are still reluctant to keep huge seamless pipe stocks and people are buying only to maintain sufficient supplies for a one-month period. However, buyers are accepting the increased seamless pipe prices, though the demand is not very good in the market. Chinese suppliers have lifted their seamless pipe prices for the UAE by $80-100/mt over the past seven weeks. Seamless pipe prices from Ukrainian producers have gone up by $30-50/mt, while import offers of Russian seamless pipes have increased by a maximum of $20/mt over the period under review. Seamless pipe prices from Romania and the Czech Republic have remained stable over the period in question. Quotations of seamless pipes from South Africa have moved up by $50-55/mt. Seamless pipe offers from top-tier producers from Japan (Sumitomo) and Argentina (Tenaris) have increased by $150 over the past seven weeks. UAE market players believe that increases in seamless pipe prices will continue to be seen in the coming period, while demand is expected to improve gradually. The UAE's economy recorded growth last year despite the continued squeeze on domestic credit provided by local banks due to the global crisis and high non-performing loan (NPL) provisions; however, such provisions are expected to decline this year and this will help the banks improve their performance and extend more loans.
Offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the local UAE market at $970-1,050/mt C&F.
Quotations of Ukrainian (Interpipe) seamless pipes 2"-12" grade B made to ASTM A106/API 5L are at $1,050-1,100/mt C&F. Offers of similar seamless pipes with 2"-8" diameter from Russia (TMK, Volzhsky) are being given to the UAE at around $980-1,020/mt C&F, while 10"-16" seamless pipes are at $1,030-1,060/mt C&F.
Seamless pipes from Romania (ArcelorMittal) 3"-8" grade B made to API 5L are quoted at around $1,280-1,300/mt C&F Dubai, while 12" seamless pipes are at $1,310-1,330/mt C&F.
South African seamless pipes from Iscor (Arcelor Mittal) 2"-6" grade B made to API 5L are quoted at around $1,125-1,150/mt C&F Dubai.
Offers of 3"-10" seamless pipes from the Czech Republic (ArcelorMittal) are being given to the UAE at $1,250-1,275/mt C&F, while 1"-1 ½" seamless pipes are at $1,310-1,420/mt C&F.
Argentinian and 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 $1,350-1,400/mt C&F, while 8"-10" seamless pipes are at $1,450-1,500/mt C&F.