Over the past two weeks, seamless pipe prices in China have increased on the back of higher billet quotations and tightness on the supply side, though greater stability has been seen in prices in the past seven days. Meanwhile, export demand for Chinese seamless pipes remains weak, while local buyers hesitate to book amid uncertainties surrounding the future steel market and heavy stocks.
Over the past two weeks, domestic prices of Chinese seamless pipes have increased by RMB 50/mt ($10/mt), while export quotations have moved up by a minimum of $20/mt. However, there is limited room for seamless pipe prices to move up further as the recovery of demand remains fragile.
On the contrary, market players are concerned that prices may start to decline as business activity shrinks during the approaching winter season.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,750-5,850/mt ($914-930/mt) ex-works. Chinese stock prices for 2"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 4,300-5,000/mt ($684-795/mt) ex-works, including 17 percent VAT.
Current export offers of seamless pipes from Chinese manufacturers for 2"-8" Sch 40 grade B material according to ASTM A106/API 5L are on average at $880-940/mt FOB. Export quotations of 2"-10" seamless pipes of grade B as per ASTM A106/API 5L from small producers are at around $750-800/mt FOB.