Demand for seamless pipes in the UAE has declined due to the start of Ramadan and the general global economic situation. Nevertheless, foreign suppliers have begun to increase offer prices for the fourth quarter. Within the past month, offers of seamless pipes from the Argentinian and Italian mills of Tenaris have increased by $30-50/mt, offers from Japan are up by $25-50/mt, while offers from Romania have risen by $50/mt. During the period under review, quotations of Chinese seamless pipes have increased by $20-25/mt, while Ukrainian and Russian producers have raised their offer prices by $50-100/mt.
Import offers of Chinese seamless pipes 1"-8" grade B made to ASTM A106/API 5L are being given to the local UAE market at $775-800/mt C&F.
Quotations of Ukrainian seamless pipes (Interpipe) 2"-8" grade B made to ASTM A106/API 5L are at $880-950/mt C&F, while 10"-12" pipes are priced at around $1,050/mt C&F, with ½"-1 ½" pipes at about $1,100/mt C&F. Offers of similar pipes with diameters up to 8" from Volzhsky Pipe Plant (part of Russian-based TMK Group) are being made to the UAE at around $950-1,000/mt C&F, while 10"-16" pipes are at the range of $1,050-1,100/mt. However, market players say that ordering from Volzhsky Pipe Plant is not easy because of the producer's stipulation of a minimum quantity in orders of 300 mt per each size.
ArcelorMittal's prices for seamless pipes, 2"-10" grade B made to API 5L, from its Romanian and South African facilities are standing at about $1,050/mt C&F.
Prices for Japanese seamless pipes (Sumitomo) 2"-10" grade B made to API 5L are at about $1,350-1,400/mt C&F. Also, there are some rumors in the market that Sumitomo is thinking of increasing its prices for seamless pipes for the fourth quarter by about $100/mt.
Offers of seamless pipes from Argentina 2"-8" grade B made to ASTM A106/API 5L from Tenaris are being given to the UAE at $1,350-1,400/mt C&F. Italian seamless pipes (Tenaris) 16" grade B as per ASTM A106/API 5L are offered at $1,850-1,880/mt C&F.
Seamless pipe producers from France and Germany have not given any prices for the fourth quarter of the current year.
Traders in the UAE say they are going through a difficult period and are suffering in the current situation especially when price increases lack support from buyers. Though oil prices remain volatile, over the past month they have climbed back to above $70 a barrel, thus giving local traders in the UAE reason to be optimistic. Until the end of September the UAE domestic seamless pipe market is expected to remain sluggish; however, in the coming months, demand for energy and accordingly demand for seamless pipes will strengthen slowly. Consequently, market insiders are expecting to see marginal increases in prices by the beginning of 2010.