Seamless pipe demand has declined slightly in Saudi Arabia over the past month on seasonally slower construction activity and sufficient stocks. Domestic prices of locally produced seamless pipes have remained unchanged over the past month. Russian and Ukrainian suppliers have also maintained their offers at previous levels. At the same time, quotations of Chinese material have declined by $50/mt over the past month; offers of seamless pipes from South Africa have decreased by $50-60/mt, while prices for Japanese material have declined by $10-20/mt over the period under review.
Market players believe buying activity may start to pick up in mid-January, but price hikes are unlikely to be accepted as traders are in no hurry to buy new material since current stock levels are sufficient to cover demand.
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 $1,030-1,080/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 $800-850/mt CFR, while quotations of seamless pipes from larger Chinese mills are at $950-1,000/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 (Tagmet) of 8"-10" 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.