Local and foreign seamless pipe suppliers have decided to keep their prices at the levels of last month in Saudi Arabia, with demand reported to be moderate. Meanwhile, there is still a lack of import offers to the country due to the Christmas and New Year holiday season. However, demand for seamless pipes is expected to rebound and remain strong in Saudi Arabia owing to a number of pipe consuming projects in the Kingdom. In particular, oil giant Saudi Aramco is preparing to invite contractors to prequalify to bid on engineering, procurement and construction (EPC) contracts for its $7 billion Jizan refinery project in Saudi Arabia. This will be one of the largest projects in the region in 2012. Also, Aramco plans to issue the tender for its marine terminal in the first quarter of 2012.
Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering seamless pipes of 6"-12" grade B made to API 5L to the domestic market at around $1,200-1,230/mt ex-works.
Offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $1,000-1,050/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-8" grade B made to ASTM are at $1,100-1,200/mt CFR. Russian seamless pipes (Volzhsky) of 2"-8" grade B as per ASTM are being offered to the Saudi market at $1,100-1,170/mt CFR.
South African seamless pipes (ArcelorMittal), 3"-6" grade B made to ASTM, are quoted at around $1,350-1,400/mt CFR.
Quotations of seamless pipes from France and Germany (V&M) and from Japan (Sumitomo) for 2"-6" grade B made to ASTM are at about $1,500-1,600/mt CFR.