China's seamless pipe market has continued to follow a weak trend over the past two weeks, as the colder weather has dented business activity in both domestic and foreign markets. Mills' domestic quotations have decreased by RMB 50-100/mt ($8-16/mt) over the past two weeks, while stockists have been keeping their offers stable. At the same time, big Chinese mills have kept their export offers steady on higher production costs, while smaller producers have cut their export quotations by a minimum of $30/mt in order to provide cash flow with the coming of year-end. Market players believe that seamless pipe demand in China will remain slack until spring, though Chinese suppliers may try to lift their offers in January to reflect an increase in round billet costs.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 5,650-5,800/mt ($905-930/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 4,700-4,900/mt ($753-785/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 ($673-721/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 2"-12" seamless pipes of grade B as per ASTM A106/API 5L from small producers are at around $730-770/mt FOB, while offers of 14"-16" pipes are at about $780-800/mt FOB.