Demand for seamless pipes in Saudi Arabia has remained strong due to construction and infrastructure projects funded by the government's high budget surplus. However, market players expect to see a weakening of buying activity from next month due to the approach of the month of Ramadan and the holiday season. Domestic quotations of locally produced seamless pipes in Saudi Arabia have remained almost unchanged over the past month. Chinese and CIS suppliers have also kept their offers mostly stable, while offers of seamless pipes from South Africa, Germany and Japan have decreased by a maximum of $50/mt over the period under review due to strong competition in the market.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering seamless pipes of 6"-12" grade B made to API 5L to the domestic market at around $1,240-1,280/mt ex-works.
Offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $950-1,030/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-8" grade B made to ASTM are at $1,200-1,250/mt CFR. Russian seamless pipes (Volzhsky) of 2"-8" grade B as per ASTM are being offered to the Saudi market at $1,150-1,200/mt CFR.
South African seamless pipes (ArcelorMittal), 3"-6" grade B made to ASTM, are quoted at around $1,300-1,350/mt CFR Saudi Arabia.
Quotations of seamless pipes from France and Germany (V&M) and from Japan (Sumitomo) for 2"-10" grade B made to ASTM are at about $1,700-1,800/mt CFR.