China's seamless pipe market is sluggish due to weakening overseas and domestic demand amid the winter offseason and global economic uncertainty. However, Chinese producers have kept their offers unchanged from the levels of two weeks amid stable quotations for feedstock material. Meanwhile, looking at China's macroeconomic indicators, investment, consumption and exports have slowed down by various degrees, impacted by global economic volatility and the tighter domestic monetary policy. Market players believe that the market will unlikely rebound in the absence of demand during the cold weather, but foresee a more favorable market after the Chinese New Year.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,300-5,400/mt ($830-845/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 6,000-6,200/mt ($940-970/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $900-950/mt FOB, while 18"-20" pipes are quoted at $1,060-1,150/mt FOB.
Export quotations of Chinese 2"-6" seamless pipes of grade B as per ASTM A106 from stocks currently vary in the range of $750-780/mt FOB, down $20/mt over the past two weeks.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,030-1,060/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,060-1,100/mt FOB.