China's domestic seamless pipe market has seen a slight downward trend during the past two weeks. Stockists' quotations have decreased by RMB 100-150/mt ($18-26/mt) amid lower raw material costs and weaker buying activity, while mills have been keeping their domestic quotations stable. At the same time, export quotations have moved up by a maximum of $20/mt amid steady demand from buyers in Southeast Asia. However, the situation in the domestic and foreign markets may get worse in the coming period due to seasonal factors.
Market players believe Chinese seamless pipe prices may regress soon amid poor export demand and the weakness in the domestic market.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,700-5,800/mt ($906-922/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 4,800-5,000/mt ($763-795/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are varying at around RMB 4,200-4,500/mt ($667-715/mt) ex-warehouse, including 17 percent VAT.
Current export offers of seamless pipes from Chinese manufacturers for 2"-8" Sch 40 grade B material according to ASTM A106/API 5L are on average at $900-940/mt FOB. Export quotations of 1 1/2"-12" seamless pipes of grade B as per ASTM A106/API 5L from small producers are at around $760-840/mt FOB, prices of 3/4"-1" pipes are at $910-960/mt FOB, while offers of 1/2" pipes are at about $1,050-1,070/mt FOB. Export prices of seamless pipes for 20"-22" grade St52-3 material according to DIN 2448 are on average at $1,030-1,080/mt FOB.