After quiet buyer activity so far in September, countries in the Middle East have reached the end of Ramadan. However, as the holidays have not yet concluded in some places, the local welded pipe market in the UAE still maintains its sluggishness. Market insiders report that demand is still low in the UAE domestic market as there is currently hardly any movement as regards real estate, infrastructure and commercial projects in the country. The decline in the UAE property market comes as oil prices have slumped from their July 2008 high of $147.27 a barrel and also due to the global shortage of credit. Anyway, market players are hoping for a recovery in welded pipe demand in October-November as residential prices in Abu Dhabi are expected to stabilize in the "near to medium" term and as rents for commercial space have stabilized over the last two months. Dubai residential prices are projected to stabilize in 2010 following a forecast 54 percent decline in prices this year. Local welded pipe producers believe that they will be able to stabilize their prices in the coming period. Meanwhile, the current price range of locally produced welded pipes has widened: over the past month the lower end has decreased by $20/mt, while the upper end has risen by $5/mt. In the import market, offers of Chinese welded pipes have dropped dramatically in the past month, by $100-110/mt. At the same time quotations of Indian welded pipes for the UAE have risen by $50/mt over the same period.
Domestic prices for locally produced 1"-6" welded pipes grade B made to ASTM A53 or BS 1387 are at about $700-735/mt ex-works, while ½"-¾" pipe sizes are at $725-745/mt ex-works. Offers of locally produced 1"-6" welded pipes with wall thickness up to 1.2 mm made from CRC are being given to the domestic market at around $780-800/mt ex-works. Galvanized pipes of 1"-4" size as per BS 1387 are quoted at about $800-825/mt ex-works.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the UAE market at $680-730/mt C&F, compared to $780-840/mt C&F one month ago.
Indian suppliers are offering ERW pipes up to 6" as per BS 1387 (light series) at $780-800/mt C&F. Indian ERW pipes grade B made to API 5L are being offered to the UAE market at $880-890/mt C&F.
South Korean ERW pipes up to 16" grade B made to ASTM A53/API 5L are currently being offered to the UAE at around $810-850/mt C&F, compared to $850-900/mt one month ago.