Slack activity in Saudi seamless pipe market amid oil price volatility

Thursday, 02 April 2015 17:01:03 (GMT+3)   |  
       

Foreign suppliers of seamless pipes have continued to lose ground in the Saudi Arabian market due to still insufficient demand. Ukrainian and South African suppliers have cut their seamless pipe offers for Saudi Arabia by $10-20/mt over the past month, while quotations of Chinese and Japanese pipes have stayed in the previous range. Saudi seamless pipe buyers are trying to avoid losses at a time when prices are continually falling and are choosing to buy only small quantities for immediate use. Market insiders report that uncertainty and price volatility in the oil market have negatively impacted on the investments needed in the energy sector to boost seamless pipe consumption in the Kingdom.

Most offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $600-620/mt CFR.

Quotations of Ukrainian seamless pipes (Interpipe) of 2"-6" grade B made to ASTM A106/API 5L to Saudi Arabia are at $920-930/mt CFR, while 8"-10" pipes are offered at around $940-960/mt CFR.

South African seamless pipes (ArcelorMittal), 2"-6" grade B made to ASTM A106, are quoted at around $960-1,000/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 $1,280-1,320/mt CFR Saudi Arabia.


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