While demand for welded pipes in Saudi Arabia is still firm, a seasonal summer slowdown is being witnessed in the country. Saudi buyers are now attempting to minimize stocks and are pressing for lower prices given the global downward trend. As a result, domestic quotations of welded pipes in Saudi Arabia have decreased by around $20/mt over the past month. In addition, Saudi pipe makers hope to maintain their offers at the current levels in the coming month as lower quotations will not boost demand, which in any case will be slower than usual during Ramadan.
Quality Saudi Arabian manufacturers, approved by state-owned national oil company Saudi Aramco, are offering 6"-10" welded steel pipes grade B as per API 5L with plain ends at around $930-950/mt ex-works on theoretical 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 $870-900/mt ex-works on theoretical weight basis.
Export quotations from Saudi Arabia of 6"-10" welded steel pipes of grade B made to API 5L from quality producers are at $980-1,000/mt FOB, while export offers of 2"-8" ERW pipes from Saudi commercial producers are at $890-930/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 $680-730/mt CFR, $20/mt lower than one month ago.