Chinese seamless pipe producers are seeing slackening business activity in their domestic market amid the seasonal slowdown in consuming industries and low infrastructure investments, while export demand is decreasing due to the European debt crisis, trade protection, the approach of Ramadan in the Middle East and the rainy season in Asia. Over the past two weeks, domestic prices of Chinese seamless pipes have decreased by around RMB 1,000/mt ($15-19/mt) in line with falling round billet prices and slack demand, while export quotations have gone down by about $20-50/mt. Most players hold a negative outlook of the prospects for the market in the coming month. Seamless pipe prices are likely to continue to trend downwards as the current market situation will hardly improve much in the coming short- term period. Moreover, the problem of overcapacity remains very severe in the market.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,200-5,300/mt ($822-838/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 6,200-6,300/mt ($980-996/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 $800-900/mt FOB, while offers from bigger mills stand at $950-1,000/mt FOB. Export quotations of the same pipes from stocks are at about $685-785/mt FOB. Export offers of 6"-10" Sch 60 seamless pipes of grade X52 as per API 5L are at around $970-1,000/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.