The welded pipe market in Saudi Arabia has been stable over the past month without much change in prices or demand. Local welded pipe producers have managed to keep their domestic and export prices unchanged at previous levels thanks to stable feedstock costs and firm demand amid expanding construction activity. Steel consumption in Saudi Arabia is foreseen to reach 26 million mt by 2015 and local demand for welded pipes is expected to register a continuous improvement.
Welded pipes with 6"-10" diameter made of grade B steel to ASTM A53 /API 5L from quality producers (approved by Saudi Aramco) are offered in the domestic market at $930-950/mt ex-works on theoretical weight basis, while commercial quality 2"-8" welded pipes made of grade A steel to ASTM A53 are quoted to local buyers at $850-880/mt delivered.
Export quotations of welded pipes of grade B as per ASTM A53 from Saudi Arabian commercial producers are at $870-910/mt FOB, while export offers of quality pipes are at $980-1,000/mt FOB.
Import offers of Chinese welded pipes of 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at around $650-680/mt CFR, down $20/mt compared to the level of one month ago. However, buyers' interest in imports is extremely low.