Due to the shortage of flat products in the UAE market, import prices of HRC in this market continue to rise. Thus, offers of Ukrainian HR coils (Zaporizhstal, Illyich) for August production are being given at around $540-550/mt C&F, offers of Russian material (MMK) are at about $560-580/mt C&F, while offers of Iranian HRC (Mobarakeh) are at $530-540/mt C&F. However, demand for flats in the UAE is now decreasing following the increase seen in traders' inventory levels. Despite the rising coil prices for August production, local producers of welded pipes in the UAE have maintained domestic quotations at the same levels by reducing their profit margins. The local UAE market is not likely to accept any price increase for welded pipes, especially when demand is expected to decline in August-September, during Ramadan.
Domestic prices for locally produced 2"-4" welded pipes grade B made to ASTM A53 or BS 1387 are at about $700-710/mt ex-works, while 1/2"-3/4" pipe sizes are at $720-740/mt ex-works. At the same time some local producers report that prices of 2"-4" ERW pipes can go down to $650/mt ex-works in some cases, for example for cash payment.
On the other hand, import quotations of welded pipes are rising due to the increase in raw material prices. However, the market is very cautious and customers are reluctant to make large bookings.
Chinese suppliers are offering ERW pipes up to 10" grade B made to ASTM A53/API 5L to the UAE market at $710-760/mt C&F, compared to $680-730/mt C&F one month ago.
Indian 2"-6" ERW pipes grade B made to ASTM A53/API 5L are currently being offered to the UAE at around $730-750/mt C&F, against $680-730/mt at the end of June.
Quotations of South Korean 2"-8" ERW pipes made to ASTM A53/API 5L are on average at $700-730/mt C&F, 10"-16" ERW pipes are at $750-775/mt C&F, and 18"-24" ERW pipes are at $800-820/mt C&F ($650-700/mt C&F one month ago). Offers of 20"-26" SAW pipes from Japan to the UAE are at $1,200-1,270/mt C&F.