The past month has not brought any significant changes to the Saudi welded pipe market as demand still lacks sufficient strength. Domestic and export quotations of locally produced ERW pipes have remained at previous levels, while import offers of Chinese welded pipes have declined by $30-40/mt over the past month. Under pressure from cheaper imports and soft flat steel prices, most market players prefer to maintain a wait-and-see approach in the current uncertain market conditions.
However, Saudi welded pipe producers hope that buying activity in the Saudi welded pipe market will pick up soon on the back of new construction, railway and pipeline projects, which would allow them to raise their quotations.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-10" welded steel pipes grade B as per API 5L with plain ends at around $930-980/mt ex-works on theoretical weight basis.
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 $810-850/mt delivered.
Export quotations from Saudi Arabia of 6"-10" welded steel pipes grade B made to API 5L from quality producers are at $980-1,030/mt FOB, while export offers of 1"-4" ERW pipes from Saudi commercial producers are at $835-880/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 $550-570/mt CFR, compared to $590-600/mt CFR one month ago.