The seamless pipe market in Saudi Arabia has started to improve over the past month on the back of numerous construction projects in the country. However, most foreign suppliers are still cautious about raising their offers as demand from traders is moderate due to high stocks. Domestic prices of locally produced seamless pipes have increased by $80-95/mt over the past month. Import seamless pipe offers from Russia, Ukraine, South Africa and Japan have stayed at previous levels. At the same time, quotations of Chinese material have gone up by $20-70/mt over the past month.
Meanwhile, market players believe that import seamless pipe offers in Saudi Arabia may go up in the coming period with the support of expected stronger buying activity amid the numerous investment programs to be implemented in the country.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering 6"-16" seamless pipes of grade B made to API 5L, PSL2 to the domestic market at around $1,150-1,175/mt ex-works.
Most offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $860-920/mt CFR, while quotations of seamless pipes from larger Chinese mills are at $980-1,020/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-8" grade B made to ASTM A106 are at $1,150-1,200/mt CFR. Russian seamless pipes (Volzhsky PP) of 3"-8" grade B as per ASTM are being offered to the Saudi market at $1,100-1,150/mt CFR.
South African seamless pipes (ArcelorMittal), 2"-6" grade B made to ASTM, are quoted at around $1,120-1,150/mt CFR Saudi Arabia.
Quotations from Japan (Sumitomo) for seamless pipes of 2"-6" grade B made to ASTM are at about $1,370-1,400/mt CFR.