Demand in the Chinese seamless pipe market continues to weaken. Domestic mills' prices for seamless pipes in China have declined by a maximum of RMB 50/mt ($8/mt) over the past two weeks amid low buying interest, while traders have kept their offers unchanged. Export quotations from most Chinese pipe producers have decreased by around $10-20/mt over the period under review amid slack transaction activity. Market players think that prices for Chinese seamless pipes may start to move up in the short run amid rising import iron ore prices. Meanwhile, domestic and foreign demand is very weak and is insufficient to support a significant price rise. Moreover, the weather has been getting colder and the off-peak consumption season is approaching, which will weaken support for seamless pipe prices.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,100-6,250/mt ($1,002-1,026/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 4,900-5,250/mt ($804-862/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,000-4,250/mt ($657-698/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $730-780/mt FOB, while offers from big producers may reach $850-870/mt FOB. Export offers of 2"-8" seamless pipes of grade B as per ASTM A106/API 5l from stocks are at the level of $650-690/mt FOB.
$1 = RMB 6.09