Demand for seamless pipes from consuming industries in the Saudi Arabian market is moderate amid a further slowdown in business activity before the year-end and seasonal factors. In such market conditions, domestic prices of locally produced seamless pipes have stayed unchanged over the past month. Russian, Ukrainian, Chinese and South African suppliers have maintained their offers at previous levels, while prices for Japanese material have declined by $30-50/mt over the period under review.
Market players believe buying activity in the Saudi seamless pipe market will hardly pick up before 2013 given sufficient inventory levels, weak global market sentiment and the approach of the end of the year. Meanwhile, new government-funded projects are expected to boost seamless pipe demand in Saudi Arabia in 2013.
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 $850-900/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 from Japan (Sumitomo) for seamless pipes of 2"-6" grade B made to ASTM are at about $1,380-1,420/mt CFR.