The past month has not brought any significant changes to the Saudi welded pipe market as demand still lacks sufficient strength, reflected the continuous decrease in global oil prices. However, Saudi pipe producers are trying to keep their quotations relatively stable, decreasing them by a maximum of $20/mt compared to the level of one month ago. Welded pipe demand in Saudi Arabia is not expected to pick up in the short term as the months of June and July will be quiet due to Ramadan. It is thought that, with many projects being put on hold or cancelled, Saudi producers will likely be forced to make reductions in their welded pipe prices in the coming period.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-16" ERW bare pipes of grade B as per API 5L PSL 2 at around $800-830/mt ex-works.
Current offers from Saudi Arabian commercial producers for 1"-4" ERW pipes of grades A, B as per ASTM A53 are being given to the domestic market at $700-730/mt delivered.
Export quotations from Saudi Arabia of 6"-20" ERW bare pipes of grade B made to API 5L from quality producers are at $825-860/mt FOB by break bulk vessel, while export offers of 1"-4" ERW pipes from Saudi commercial producers are at $725-760/mt FOB.
Import offers of Chinese welded pipes of 2"-6" grade B made to ASTM A106/API 5L are being given to the local Saudi market at around $500-530/mt CFR, compared to $500-540/mt CFR one month ago.