Offers of Saudi welded pipes have slid down following the downward price trend in the hot rolled coil (HRC) segment. In particular, domestic quotations of welded pipes from commercial manufacturers have decreased by $30/mt over the past month, while quality manufacturers have cut their offers for the domestic market by $50/mt.
Export prices of welded pipes have declined by $25-50/mt over the period under review. The downward adjustments are also attributable to ongoing weak business activity in the market and falling import quotations.
At the same time, market players report firm demand from state-owned national oil company Saudi Aramco for welded pipes with specific requirements and of higher grades. However, the market is very cautious and customers are reluctant to make large bookings due to expectations of lower prices amid current global market sentiment.
Quality Saudi Arabian manufacturers, approved by Saudi Aramco, are offering 6"-10" welded steel pipes grade B as per API 5L with plain ends at around $950-1,000/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 $900-950/mt delivered 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 $1,000-1,050/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $920-975/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 $700-720/mt CFR, $60/mt lower than one month ago.