During the month of August prices of flat products in Saudi Arabia posted an increase due to the strong demand in the market, especially as traders were buying material for restocking purposes ahead of Ramadan. The latest offers of CIS origin HRC quoted to buyers in Saudi Arabia are at $600-630/mt C&F, up $40-50/mt from the end of July. November production HRC from local steelmaker Hadeed is being offered at around $600-610/mt ex-works, compared to $560-570/mt ex-works one month ago.
Following the increase of offer price levels for flat products for the Saudi market, locally produced welded pipes have become more expensive by $30-50/mt in both the domestic and external markets during the past month. However, market sources think that prices may stop rising during September, which is always a slow month in the region. Stocks of flat products have been filled and market insiders do not expect any surge in buyer activity and or any big bookings before October. Some construction projects were completed before Ramadan, and it is expected that the local welded pipe market will pick up in the post-Ramadan period.
Current offers from Saudi Arabia's commercial producers for 6"-16" welded pipes grade B as per ASTM A53/API 5L are at $700-750/mt ex-works (here and below on a theoretical weight basis). Quality Saudi Arabian manufacturers approved by the 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 $800-850/mt ex-works. Export quotations of 6"-16" welded steel pipes of grade B made to API 5L from quality producers are at $850-900/mt FOB.
Indian suppliers are offering ERW pipes up to 6" as per BS 1387 (light series) at around $730-750/mt C&F. Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the Saudi market at $780-840/mt C&F.