Demand for welded pipes in the UAE is getting weaker amid low buying activity in consuming industries and the bearish trend globally. Local traders have reduced purchases to minimum levels due to their rather high inventories. Emirati pipe producers have cut their prices by $15-20/mt over the past month amid a decrease in feedstock prices and slack business activity.
No improvement is forecast in the UAE welded pipe market for the short term. Most market operators believe trading activity will only revive after Ramadan.
UAE domestic prices for locally produced ½"-4" welded pipes with 2-4 mm wall thickness of grade B made to ASTM A53 or BS 1387 are at about $730-765/mt ex-works. Prices are given on theoretical weight basis.
Domestic quotations of ½"-4" welded pipes with 1.5-1.8 mm wall thickness of grade B made to ASTM or BS 1387 are at about $745-795/mt ex-works. Current domestic prices of 1"-4" galvanized ERW pipes with 2-4 mm wall thickness are in the range of $920-945/mt ex-works.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM are being given to the UAE market at about $680-700/mt CFR, $50/mt lower than one month ago.
Indian suppliers are offering ERW pipes, 1"-6" as per BS 1387 (light series), to the UAE at $740-760/mt CFR on actual weight basis, compared to $800-830/mt CFR one month ago.