Activity in the welded pipe market in Saudi Arabia has been generally slow over the past month as end-user demand has remained subdued. The political tensions in both the country and in the Middle East region, as well as the generally slow market globally, has made Saudi buyers reluctant to spend money. Domestic and export quotations of locally produced ERW pipes have declined by around $80-100/mt on slow buying and falling feedstock quotes, while import offers of Chinese welded pipes have declined by $10-20/mt over the past month. Market players believe the current weak trend may persist in the coming month on the back of uncertain demand and lower flat steel prices.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-20" ERW bare pipes grade B as per API 5L PSL 2 at around $800-850/mt ex-works.
Current offers from Saudi Arabian commercial producers for 1"-4" ERW pipes grade A, B as per ASTM A53 are being given to the domestic market at $700-730/mt delivered.
Export quotations from Saudi Arabia of 6"-20" ERW bare pipes grade B made to API 5L from quality producers are at $825-900/mt FOB by break bulk vessel, while export offers of 1"-4" ERW pipes from Saudi commercial producers are at $725-760/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 $500-540/mt CFR, compared to $520-550/mt CFR one month ago.