The low season in the Saudi Arabian seamless pipe market has started. Chinese suppliers have decreased their seamless pipe prices for Saudi Arabia by a maximum of $30/mt over the past month. Ukrainian suppliers have cut their seamless pipe offers for Saudi Arabia by $70-80/mt over the period under review, while quotations of Russian seamless pipes have declined by $10-20/mt. Seamless pipe offers from Japan and South Africa have not yet undergone change. Competition with Chinese suppliers, who are offering seamless pipes at attractive prices, remains very strong in the Saudi market. The forecasts for the second half of the summer are not positive for suppliers. This can be explained by seasonal factors, and, besides, Ramadan is also approaching. During Ramadan business activity will be minimal. By all appearances, it will not be easy for suppliers to prepare offers for August.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering seamless pipes 6"-10" of grade B made to API 5L to the domestic market at around $1,000-1,050/mt ex-works.
Offers of Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are being given to the Saudi Arabian market at $820-925/mt C&F.
Quotations of Ukrainian seamless pipes (Interpipe) 2"-6" grade B made to ASTM A106/API 5L are at $980-1,000/mt C&F. Russian seamless pipes 3"-8" grade B as per ASTM A106/API 5L are being offered to the Saudi market at $990-1,015/mt C&F.
Quotations of 2"-6" seamless pipes from South Africa (ArcelorMittal) grade B as per API 5L are at about $1,000-1,050/mt C&F.
Quotations of seamless pipes to Saudi Arabia from Japan (Sumitomo) for 2 ½"-6" grade B made to ASTM A106/API 5L are varying at about $1,300-1,350/mt C&F.