Conditions in the Saudi market for seamless line pipes remain unfavorable because the country is still suffering problems relating to its foreign labor force. Meanwhile, demand for OCTG is stable in the country amid high drilling and exploration activity. Chinese suppliers have cut their seamless pipe offer prices by a maximum of $20/mt from one month ago, while quotations of South African material have also lost around $20/mt. Seamless pipe suppliers from Ukraine have stayed unchanged over the past month, while prices of Japanese seamless pipes have moved up by $20/mt.
Saudi buyers are in no hurry to conclude contracts for import products and prefer to study the market situation more carefully. However, market players believe that large-scale investments in infrastructure projects may improve seamless pipe demand in the country next year.
Most offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $780-840/mt CFR, while quotations of seamless pipes from larger Chinese mills are at $900-930/mt CFR. Import offers of 7"-9 5/8" casing of N80 or L80 grade as per API 5CT from Chinese producers are given to the Saudi market at around $980-1,000/mt CFR, while quotations of 4 1/2" tubing of P110 grade as per API 5CT are at levels of $1,150-1,200/mt CFR.
Quotations of Ukrainian seamless pipes (Interpipe) of 2"-10" grade B made to ASTM A106 to Saudi Arabia are at $1,020-1,050/mt CFR.
South African seamless pipes (ArcelorMittal), 2"-6" grade B made to ASTM A106, are quoted at around $1,030-1,050/mt CFR Saudi Arabia.
Quotations from Japan (NSSMC) for seamless pipes of 2"-6" grade B made to ASTM A106/API 5L are at about $1,420-1,480/mt CFR Saudi Arabia.