There is still no improvement in the UAE welded pipe market where demand continues to be slack. Offers of flat steel to the UAE are weakening and welded pipe prices are declining. Prices for locally produced welded pipes have decreased by $20-40/mt over the past month. Import offers of Chinese welded pipes have moved down by $30-40/mt, prices of South Korean pipes have lost $20-50/mt, while quotations of Indian welded pipes have increased by $10-50/mt, all over the past month.
Domestic prices for locally produced 1"-4" welded pipes with 2-4 mm wall thickness grade B made to ASTM A53 or BS 1387 are at about $740-780/mt ex-works, while ½"-¾" pipe sizes with 1.8-2.0 mm wall thickness are at $770-790/mt ex-works. Current domestic prices of 1"-4" galvanized ERW pipes made to BS 1387 are in the range of $940-950/mt ex-works. Prices are given on actual weight basis.
Offers of Chinese ERW pipes up to 10" grade B as per ASTM A53/API 5L are being given to the UAE market at $800-850/mt C&F, compared to $840-880/mt C&F one month ago.
Indian suppliers are offering ERW pipes 1"- 6" as per BS 1387 (light series) or API 5L at $830-900/mt C&F, compared to $820-850/mt one month ago.
South Korean ERW pipes up to 16" size of grade B made to ASTM A53/API 5L are being offered to the UAE at $850-900/mt C&F, while quotations of 18"-24" ERW pipes are at $980-1,000/mt C&F.
Despite the current price softness, the general expectations are rather positive. The growth outlook for the UAE's economy has improved slightly over the past three months on expected higher oil output and as concerns about the Dubai debt restructuring have eased. Improved credit conditions along with continued government investment in infrastructure have positively influenced the level of construction activities, raise the optimism in the sector.