Welded pipe demand remains strong in Saudi Arabia

Welded pipe demand in Saudi Arabia remains firm amid the implementation of some major construction projects. Over the past month, Saudi manufacturers have increased their quotations by $20-50/mt citing higher production costs. In particular, government expenditure on new construction projects is supporting welded pipe consumption in Saudi Arabia. Meanwhile, import offers of Chinese material have not been changed over the period under review. Demand for welded pipes in Saudi Arabia is expected to remain strong for the remainder of the year, but may weaken slightly in November due to the upcoming religious holiday.
 
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-16" welded steel pipes grade B as per API 5L with plain ends at around $1,050-1,100/mt ex-works (here and below on actual weight basis). Current offers from Saudi Arabian commercial producers for 2"-8" ERW pipes grade A, B as per ASTM A53 are being given to the domestic market at $970-1,050/mt ex-works.
 
Export quotations from Saudi Arabia of 6"-16" welded steel pipes grade B made to API 5L from quality producers are at $1,100-1,150/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $1,000-1,080/mt FOB.
 
Import offers of Chinese welded pipes, 2"-6" grade B made to ASTM A106/API 5L, are being given to the local Saudi market at around $880-900/mt CFR.