The welded pipe market in Saudi Arabia has been stable during the past month, as predicted. Local producers have opted to keep their prices unchanged. Market players are very optimistic regarding the prospects for the market. External factors are indicating a gradual improvement: oil prices are rising, external financing conditions are easing, and an incipient global recovery is under way. It is expected that up to the end of this year the welded pipe market in Saudi Arabia will be stable and that price decreases will be unlikely. Local producers of welded pipes are not going to increase their prices for the time being as they have sufficient feedstock inventories and, consequently, do not depend on coil price fluctuations. Any possible price increase will be in response to rising demand levels.
Current offers from Saudi Arabia's commercial producers for 2"-8" welded pipes grade A, B as per ASTM A53/API 5L are at $850-900/mt ex-works (here and below on a theoretical weight basis). 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 $950-1,000/mt ex-works. Export quotations of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $1,000-1,050/mt FOB. Commercial manufacturers are offering 2"-8" welded pipes grade A, B as per ASTM A53/API 5L to the external market at prices lower than for the domestic market due to strong competition, i.e., at $820-850/mt FOB.
In the import segment, prices for Chinese welded pipes have dropped by $60-70/mt over the period of review, as Chinese suppliers are very interested in the Middle East market and are looking for new customers. Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the Saudi market at $660-720/mt C&F, compared to $730-780/mt C&F one month ago.
South Korean ERW pipes up to 16" grade B made to ASTM A53/API 5L are currently being offered to Saudi Arabia at around $810-850/mt C&F.
Indian suppliers are offering ERW pipes up to 6" as per BS 1387 (light series) at the level of $780-830/mt C&F Saudi Arabia, $20-50/mt higher than one month ago.