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Moderate but steady demand in Saudi seamless pipe market

Monday, 16 April 2012 12:00:03 (GMT+3)   |  
       

Demand in the Saudi Arabian market for seamless pipes remains moderate but steady, supported by a number of investment projects. Domestic quotations of locally produced seamless pipes in Saudi Arabia have stayed at the levels of one month ago amid government restrictions. Foreign suppliers have also kept their offers stable except for Russian and Ukrainian producers, which have increased their quotations by around $50/mt over the past month. Market players believe seamless pipe prices will not rise significantly in the coming period and should stabilize as trading activity may slow down by the summer due to seasonal factors.

Market traders report that local manufacturer Jubail Energy Services Company (JESCO) is offering seamless pipes of 6"-12" grade B made to API 5L to the domestic market at around $1,250-1,270/mt ex-works.

Offers of Chinese seamless pipes of 2"-6" grade B made to ASTM are being given to the Saudi Arabian market at $920-1,030/mt CFR.

Quotations of Ukrainian seamless pipes (Interpipe) of 2"-8" grade B made to ASTM are at $1,200-1,250/mt CFR. Russian seamless pipes (Volzhsky) of 2"-8" grade B as per ASTM are being offered to the Saudi market at $1,150-1,200/mt CFR.

South African seamless pipes (ArcelorMittal), 3"-6" grade B made to ASTM, are quoted at around $1,350-1,400/mt CFR Saudi Arabia.

Quotations of seamless pipes from France and Germany (V&M) and from Japan (Sumitomo) for 2"-10" grade B made to ASTM are at about $1,750-1,800/mt CFR.


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