The religious holidays in Saudi Arabia resulted in stability in the market, with local producer JESCO maintaining its seamless pipe offers for the domestic market at previous levels. Offers of Chinese seamless pipes have remained almost unchanged for Saudi buyers, with only the lower end of quotations declining by $10/mt over the past month. At the same time, Ukrainian suppliers have reduced their seamless pipe prices for Saudi Arabia by $50-60/mt over the past month, while Russian seamless pipe prices have decreased by $100/mt over the same period. Quotations of Japanese material have moved down by $100/mt over the period under review. Demand may pick up in the country after the holiday, but the real recovery in demand is expected in 2011 on the back of new investment projects. Meanwhile, seamless pipe prices may start to rise with the support of raw material costs.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering seamless pipes 6"-12" of grade B made to API 5L to the domestic market at around $1,030-1,050/mt ex-works.
Offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the Saudi Arabian market at $890-950/mt C&F.
Quotations of Ukrainian seamless pipes (Interpipe) 2"-6" grade B made to ASTM A106/API 5L are at $1,020-1,050/mt C&F. Russian seamless pipes 2"-10" grade B as per ASTM A106 are being offered to the Saudi market at $1,000-1,050/mt C&F.
Quotations of 2"-6" seamless pipes from South Africa (ArcelorMittal) grade B as per API 5L are at about $1,070-1,100/mt C&F.
Prices for Spanish (Tubos Reunidos) seamless pipes 2"-6" grade B made to ASTM A106/API 5L are about $1,170-1,200/mt C&F.
Quotations of seamless pipes to Saudi Arabia from Japan (Sumitomo) for 8"-12" grade B made to ASTM A106/API 5L are at $1,300-1,350/mt C&F.
Offers of seamless pipes 8"-10" grade B made to ASTM A106/API 5L from V&M (France and Germany) to Saudi Arabia are at $1,470-1,500/mt C&F.