The welded pipe market in the United Arab Emirates (UAE) has seen another leap in prices on the back of higher flat steel cost and the expected upturn in both local and export demand. Prices for locally produced welded pipes have increased by $10-30/mt over the past month. Import offers of Chinese welded pipes have gone up by $10-50/mt. Indian suppliers have increased their welded pipe quotations by $50-70/mt during the past month. Market players report that welded pipe prices in the UAE will continue to strengthen due to higher welded pipe import offers and rising prices of hot rolled coil (HRC). Meanwhile, welded pipe demand is recovering at a slow rate in the UAE, but the general expectations are sufficiently bright. Steel consumption in the UAE is expected to rise by four percent in 2011 to 6.6 million tons, driven by demand from the oil and gas industry. Infrastructure projects in shipbuilding, pre-engineered buildings, pipelines, power plants, water treatment facilities, airports, rail projects and sports complexes are also driving demand. Market sources state that in 2010 the UAE awarded contracts totaling US$39 billion in value in the fields of energy, infrastructure and building construction.
UAE domestic prices for locally produced 1"-4" welded pipes with 2-4 mm wall thickness grade B made to ASTM A53 or BS 1387 are at about $800-850/mt ex-works, while ½" welded pipe sizes with 2-4 mm wall thickness are at $830-890/mt ex-works. Prices are given on actual weight basis.
Domestic quotations of 1"-4" welded pipes with 1.2-2.0 mm wall thickness grade B made to ASTM A53 or BS 1387 are at about $850-950/mt ex-works.
Current domestic prices of ½"-4" galvanized ERW pipes with 2-4 mm wall thickness made to BS 1387 (light series) are in the range of $930-960/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 about $810-900/mt C&F.
Indian suppliers are offering ERW pipes 1"- 6" as per BS 1387 (light series) to the UAE at $860-900/mt C&F, compared to $810-830/mt one month ago.