Business activity is still slow in the Chinese seamless pipe market. Domestic prices of seamless pipes have stayed relatively stable in China over the past two weeks, though demand from local customers remains slow amid the winter season, weak market confidence and tight liquidity. Buying is likely to shrink further in the January holiday season, with a possible revival in February after the Lunar New Year holiday. At the same time, some Chinese exporters have tried to raise their offers by a maximum of $30/mt over the past two weeks anticipating increased buying activity after the New Year holiday, while others have kept their prices unchanged amid continuing uncertainty in the global steel market. However, market sources believe Chinese seamless pipe prices are unlikely to fluctuate too much in the coming period and may stay at the current levels.
Chinese domestic prices of 2"-8" seamless pipes according to GB/8163 are varying at around RMB 5,000-5,400/mt ($790-850/mt) ex-works, including 17 percent VAT. Domestic prices of seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,200/mt ($945-980/mt) ex-works.
Current export offers of seamless pipes from Chinese manufacturers for 2"-6" Sch 40 grade B material according to ASTM A106/ASTM A53/API 5L are on average at $900-980/mt FOB.
Export quotations for 13 3/8" casing, J55 as per API 5CT, BTC, are at $1,030-1,060/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $1,060-1,100/mt FOB.