UAE seamless pipe market expects recovery in autumn

Thursday, 23 July 2009 18:04:41 (GMT+3)   |  
       

The seamless pipe market in the UAE has been indicating a downtrend in prices during the past month against a background of poor demand and a low transaction volume. Despite the rising oil prices and many oil projects, market players say there is little activity in the market due to the seasonal lull in summer and the approach of the month of Ramadan. Within the past month offers of seamless pipes from the Argentinian and Italian mills of Tenaris have decreased by $150-250/mt, offers from Japan are down by $200-250/mt, while offers from Romania have fallen by $100/mt. Quotations of Chinese seamless pipes have remained at the same levels. Only seamless pipe suppliers from the CIS have been trying to increase their prices, but their new levels have not been confirmed by demand. Thus, over the past month Ukrainian-based Interpipe has raised its offer prices by $20-40/mt, while Russian-based TMK has upped its offers by $100/mt during the same period.

Import offers of Chinese seamless pipes 1"-10" grade B made to ASTM A106/API 5L are being given to the local UAE market at $750-780/mt C&F.

Offers of Ukrainian seamless pipes (Interpipe) 2"-6" grade B as per ASTM A106/API 5L are being given to the UAE market on average at $820-850/mt C&F, while 8"-12" pipes are at $920-930/mt C&F. Offers of similar pipes of diameter up to 8" from Volzhsky Pipe Plant (TMK Group, Russia) are being given to the UAE at around $900-950/mt C&F. At the same time SteelOrbis has been informed that quotations of 12"-14" seamless pipes from Volzhsky Pipe Plant can be heard at $1,200/mt C&F, with 16" seamless pipes reaching $1,300-1,350/mt C&F. Seamless pipes up to 8" from Pervouralsky Novotrubny Works (CHTPZ Group, Russia) are offered to the UAE on average at $820-880/mt C&F.

Prices for Romanian seamless pipes (ArcelorMittal) 2"-10" grade B made to API 5L are at about $1,000/mt C&F, 12"-14" pipes are at $1,075-1,100/mt C&F, and 16" are at $1,400-1,450/mt C&F. Offers of seamless pipes from the Czech Republic (ArcelorMittal) are being given to the UAE at $1,200-1,300/mt C&F depending on sizes.

Prices for Japanese seamless pipes (Sumitomo) 2"-10" grade B made to API 5L are at about $1,325-1,350/mt C&F, with 12"-14" pipes at $1,500-1,550/mt C&F.

Offers of seamless pipes from Argentina 1/2" grade B made to ASTM A106/API 5L from Tenaris are coming to the UAE at $2,000/mt C&F, offers of 3/4"-1" are at $1,800/mt C&F, offers of 1 1/4"-1 1/2" are at $1,750/mt C&F, offers of 2"-8" are at $1,300-1,350/mt C&F, 12" pipes are at $1,500-1,600/mt C&F, and 14" pipes are at $1,550-1,650/mt C&F.

Italian seamless pipes (Tenaris) 16" grade B as per ASTM A106/API 5L are offered at $1,800-1,850/mt C&F.

Quotations of seamless pipes from France and Germany (V&M) are at the same level as Tenaris' prices.

A revival of buyer activity is expected in the UAE seamless pipe market at the end of September-beginning of October, and this could push up import quotations of seamless pipes. Additionally, the economic situation is improving in the UAE and many new oil and gas projects are being started. For example, recently Abu Dhabi awarded more than $10 billion in contracts for the development of a natural gas processing plant and an offshore field as the United Arab Emirates' largest sheikhdom seeks more fuel to meet energy demand.


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