UAE welded pipe suppliers raise prices despite low demand

Friday, 04 May 2012 14:50:05 (GMT+3)   |  

End-user demand has remained low in the UAE market for welded pipes owing to the lack of new construction projects. However, local producers of welded pipes have increased their offers by a maximum of $30/mt over the past month for pipes with 2-4 mm wall thickness on the back of higher hot rolled coil prices, while offers of pipes with 1.5-2.0 mm wall thickness and galvanized pipes have stayed in the previous range. Chinese suppliers have raised their offers by a maximum of $30/mt, while offers of Indian ERW pipes have gone down by $30/mt over the past month. South Korean suppliers have also cut their quotations by $50/mt to stimulate sales. Market players believe buying activity in the UAE may slow further in summer due to the seasonal economic slowdown during Ramadan and is unlikely to pick up before September.

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 $830-860/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 $835-910/mt ex-works. Current domestic prices of 1"-4" galvanized ERW pipes with 2-4 mm wall thickness are in the range of $970-1,020/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 $830-850/mt CFR.

Indian suppliers are offering ERW pipes, 1"-6" as per BS 1387 (light series), to the UAE at $830-850/mt CFR, $30/mt lower than one month ago.
South Korean 10"-20" ERW pipes grade B made to ASTM A53/API 5L are being offered to the UAE at on average $900-950/mt CFR.


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