After the National Day holiday in China (October 1-7), the Chinese market for seamless pipes has seen a further decrease in domestic and export prices amid extremely weak buying activity and the weakness in round billet quotations. Over the past two weeks, Chinese suppliers have decreased their domestic quotations by RMB 50-100/mt ($5-15/mt), while export offers of line pipes have gone down by $10-30/mt. Meanwhile, export quotations of casing and tubing have stayed unchanged amid firm demand from oil and gas companies. The recovery of seamless pipe demand from local buyers has been slowed down by China's strict monetary policy and worsening economic conditions. Exports of seamless pipes from China are also expected to be slow in the coming period amid the slow recovery of the global economy and sluggish demand overseas. The raw material markets in China are tending to weaken further amid pessimistic market sentiments and tight liquidity, thereby weakening support for seamless pipe prices. Market participants believe the market is unlikely to see any considerable improvement this year. However, further developments in the Chinese seamless pipe market will be closely linked to the economy at home and abroad.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,700-5,750/mt ($890-900/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 6,300-6,500/mt ($985-1,015/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-12" grade B material according to ASTM A106/ASTM A53/API 5L are on average at $920-1,000/mt FOB, while 14"-24" seamless pipes are at about $1,030-1,070/mt FOB.
Export quotations for 4 ½"-13 3/8" casing, J55 as per API 5CT, plain ends, are at $1,120-1,150/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,170-1,200/mt FOB.