Buying activity in the seamless pipe market in Saudi Arabia has weakened over the past month influenced by the recent religious holiday in the Middle East. Meanwhile, Saudi buyers still remain in wait-and-see mode despite the end of the holiday.
Domestic prices of locally produced seamless pipes have declined by $70/mt over the past month. Russian, Ukrainian and Japanese suppliers have maintained their offers at previous levels, while prices for South African material have declined by a maximum of $20/mt over the period under review. At the same time, offers of seamless pipes from China have increased by around $50/mt over the past month.
In general, seamless pipe consumption in Saudi Arabia is expected to remain strong due to the large number of ongoing infrastructure and construction projects, though buyers will try to avoid possession of large inventories as the end of the year approaches.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering 6"-16" seamless pipes of grade B made to API 5L, PSL2 to the domestic market at around $1,030-1,080/mt ex-works.
Most offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $800-850/mt CFR, while quotations of seamless pipes from larger Chinese mills are at $950-1,000/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-8" grade B made to ASTM are at $1,150-1,200/mt CFR. Russian seamless pipes (Tagmet) of 4"-8" grade B as per ASTM are being offered to the Saudi market at $1,100-1,150/mt CFR.
South African seamless pipes (ArcelorMittal), 2"-6" grade B made to ASTM, are quoted at around $1,180-1,200/mt CFR Saudi Arabia.
Quotations of seamless pipes from Japan (Sumitomo) for 2"-6" grade B made to ASTM are at about $1,430-1,450/mt CFR.