Seamless pipe market softens in China

Seamless pipe quotations from Chinese producers have gone down slightly over the past two weeks in line with weaker round billet prices and the slowdown in buying activity. Domestic seamless pipe prices have gone down by a maximum of RMB 50/mt ($5/mt) over the past two weeks. Meanwhile, export quotations of Chinese seamless pipes have stayed almost unchanged. Chinese seamless pipe suppliers hope to maintain their prices at the current levels until the end of this month, expecting lower offers in August due to the traditional off-peak season. However, pipe prices may go up again in late Q3 when affordable housing projects speed up construction and as downstream demand improves.
 
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,800-5,850/mt ($900-905/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, are at around RMB 6,500-6,650/mt ($1,005-1,030/mt) ex-works.
 
Current export offers of seamless pipes from Chinese manufacturers for 2"-10" Sch 40 and Sch 80 grade B material according to ASTM A106/ASTM A53 are on average at $860-960/mt FOB.
 
Export offers of Chinese seamless pipes with diameter 33.7-48.3 mm made of St.35.8, 37 grade according to DIN 2448 are in the range of $1,250-1,360/mt FOB.
 
Export quotations for 4 ½"-9 5/8" casing J55 as per API 5CT, plain ends, are at $865-950/mt FOB, while 13 3/8" casing, BTC (buttress thread casing), are at around $1,180-1,250/mt FOB.