Activity in the seamless pipe market in China has remained slow. Chinese seamless pipe prices in the domestic market have declined by around RMB 50-150/mt ($7-23/mt) over the past two weeks amid slim sales and a further weakening of the steel futures market. Export offers of seamless pipes from China have softened by around $20-30/mt over the same period due to slow buying activity. In addition, prices of raw materials and billets have continued to decrease in China, contributing to the price declines for seamless pipes.
Considering prices of raw materials are continuing to soften and that demand remains weak in the off-season influenced by the hot and rainy weather, most market players are not confident on the prospects for the market in the coming period. However, seamless pipe suppliers in China do not plan to adjust their quotations in the near future as it would be difficult for any price adjustment to boost the market in the current situation.
Domestic prices of 4"-8" seamless pipes according to GB/8162-8163 are varying at around RMB 4,300-4,450/mt ($698-723/mt) ex-works, including 17 percent VAT.
Chinese ex-stock prices for 2"-8" seamless pipes according to GB/8162-8163 in Shanghai are at around RMB 3,650-3,850/mt ($593-625/mt) ex-warehouse, including 17 percent VAT, while traders in Tianjin and Beijing are offering the same pipes at around RMB 3,550-3,900/mt ($576-633/mt) ex-warehouse.
Current export quotations from most Chinese manufacturers for 2"-6" grade B seamless pipes according to ASTM A106/API 5L are on average at $610-650/mt FOB.
Export quotations for 7" casing J55 as per API 5CT are in the range of $780-800/mt FOB.
$1 = RMB 6.15