The Chinese seamless pipe market has remained quiet amid cautious sentiment given the unclear outlook. Market players report sluggish trading activity in the domestic market before the Chinese New Year holiday starting January 31, while foreign demand for China's seamless pipes is showing no signs of improvement. Chinese seamless pipe suppliers have mainly kept their prices unchanged over the past two weeks. Market participants generally hold a negative view on the prospects for the market in the first quarter. In light of weak demand, seamless pipe prices in China are likely to remain stable in the short run. Some improvement might be seen in mid-February at the earliest.
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,200/mt ($984-1,017/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 4,900-5,250/mt ($803-860/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 4,050-4,200/mt ($664-689/mt) ex-warehouse, including 17 percent VAT.
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $730-780/mt FOB, while offers from big producers stay at levels of $850-880/mt FOB.
Export prices for 7"-9 5/8" casing pipes of J55 strength grade, as per API 5CT, plain ends, are at about $830-900/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $900-950/mt FOB.
$1 = RMB 6.09