The Saudi market for welded pipes remains strong owing to a number of state-funded projects in infrastructure and other fields of construction. Meanwhile, Saudi welded pipe producers have left their prices unchanged over the past month amid governmental regulations. Saudi Arabian market players believe welded pipe prices may move up slightly in the coming period supported by strong demand in the local market and higher quotations of flat steel. However, no substantial change is anticipated due to the negative global economic sentiment and governmental regulations. Meanwhile, demand for welded pipes is expected to remain strong until July when Ramadan starts.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $1,000-1,050/mt ex-works on theoretical weight basis.
Current offers from Saudi Arabian commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are being given to the domestic market at $950-1,000/mt ex-works on theoretical weight basis.
Export quotations from Saudi Arabia of 6"-10" welded steel pipes grade B made to API 5L from quality producers are at $1,050-1,100/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $960-1,020/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 $820-850/mt CFR, i.e., at the same level as one month ago.