The situation in the Chinese seamless pipe market has not improved yet due to the cold weather as well as tight liquidity. Domestic prices of Chinese seamless pipes have stayed in the previous range, dropping RMB 100/mt ($15/mt) only in some cases due to lower-than-expected demand, while export quotations have not been revised. Market participants believe Chinese seamless pipe prices may stabilize in the coming short-term period and start to go up in March supported by the current stability of iron ore prices, the expected improvement of demand at the end of February and early March in line with warmer weather, and the anticipated improvement in the liquidity situation in the coming period.
Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,000-5,300/mt ($790-840/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 8"-12" grade B as per ASTM A106/API 5L, are at around RMB 5,800-6,200/mt ($920-980/mt) ex-works.
Current export offers of seamless pipes from most Chinese manufacturers for 2"-10" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $850-900/mt FOB, while offers of the same pipes from other tier-one pipe mills may reach $950/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,000-1,050/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,050-1,100/mt FOB.