Weak activity ahead of holiday in local Chinese seamless pipe market

Chinese domestic seamless pipe producers have mostly kept their local prices stable over the past two weeks amid weak business activity before the Labour Day holiday. Meanwhile, traders have increased their offers by around RMB 50-100/mt ($14-22/mt) boosted by rising costs. Export offers of seamless pipes from China have declined by a slight margin of around $10/mt amid efforts to spur buying activity in overseas markets. However, the market performance shows no signs of recovery. Considering the current situation and the temporary holiday lull, market players think that seamless pipe prices in China will likely follow a stable trend in the coming short run.
 
Domestic prices of seamless pipes, 2"-8" grade B as per ASTM A106/API 5L, are at around RMB 6,000-6,150/mt ($958-982/mt) ex-works, including 17 percent VAT. Chinese domestic prices of 2"-6" seamless pipes according to GB/8162-8163 are varying at around RMB 5,000-5,100/mt ($799-823/mt) ex-works. Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,900-4,150/mt ($623-663/mt) ex-warehouse, including 17 percent VAT.
 
Current export quotations from most Chinese manufacturers for 2"-12" grade B seamless pipes according to ASTM A106/API 5L are on average at $680-740/mt FOB.
Export prices for 7"-9 5/8" casing pipes of J55 strength grade, as per API 5CT, plain ends, are at about $850-900/mt FOB, while 2 7/8"-3 1/2" tubing, plain ends, are at around $900-950/mt FOB.
$1 = RMB 6.26