The situation in the Chinese seamless pipe market has deteriorated. Seamless pipe prices in China have declined in line with softening round billet quotations and sluggish demand. Over the past two weeks, domestic prices of Chinese seamless pipes have decreased by RMB 100/mt ($15-20/mt), while export quotations have declined by around $20/mt. Soft demand, serious oversupply and tight liquidity are likely to restrain any rebound movement in seamless pipe prices in China in the coming short-term period. It is very likely that Chinese seamless pipe producers will have to continue cutting prices amid the summer lull in foreign outlets and the unfavorable conditions in the domestic market.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 4,900-5,000/mt ($775-790/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,900-6,000/mt ($935-950/mt) ex-works.
Current export offers of seamless pipes from most Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $770-830/mt FOB. Export offers of 10" seamless pipes of grade X42 as per API 5L are at $940-960/mt FOB. Export quotations of 2"-14" seamless pipes made to ASTM A106 of premium quality from stocks are at about $720-740/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,000-1,030/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,050-1,080/mt FOB.