The Saudi Arabian welded pipe market is quiet because of a slowdown in business activity due to the summer and the month of Ramadan. Over the past month, Saudi quality pipe producers have left their prices unchanged thanks to steady demand from oil companies, while commercial producers have decreased their domestic and export offers by $5-20/mt due to the weakening of construction activity in the region. The sluggish demand situation is expected to last until September because of the summer vacation period and the end-of-Ramadan holiday in August. However, the general mood in the market is positive and welded pipe producers hope that demand will pick up from September up to the end of the year on the back of a number of projects.
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, while their export quotations are at $980-1,000/mt FOB.
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 $850-900/mt ex-works on theoretical weight basis, while offers for overseas buyers are being given at around $870-925/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 $700-730/mt CFR, a maximum $20/mt higher than one month ago.