Chinese seamless pipe export price down
2012-08-30 09:14:35 [Print]
BEIJING (Asian Metal) 30 Aug 12 - Export prices of Chinese seamless pipe decrease by USD23-30/t due to economic downturns in Europe and emerging markets like Russia, as well as lowering prices of raw materials, with the price of API 5L GRB Φ219*8mm at USD760-777/t (VAT included) FOB China. Insiders predict that the demand from oversea buyers is hard to release within a short period of time.
A sales official from Luxing Pipe, a medium-sized seamless pipe producer and exporter in Shandong Province tells Asian Metal that the export price of API 5L GRB Φ219*8mm is RMB4,950/t (USD777) (VAT included) FOB Qingdao Port at the moment, down by USD23/t over that of the previous transaction day.
Treating Europe as the major export market, the source’s sales volume saw a decline in past few weeks, which is currently 1,000-1,500tpm, while it is over 5,000tpm in the peak season. According to the data released by World Steel Association (WSA), affected by the weakened economic outlook of Europe, the global steel production in July barely reached 78.7% of the capacity of iron and steel enterprises, down by 0.8% compared with that during the same period of last year.
Besides, he discloses that he has newly set up a department within his company, being responsible for sales in Southeast Asia. “We aim to expand our business in local markets,” said the source, “Apart from a considerable demand of Chinese pipes, these regions pose fewer obstacles to Chinese products.”
Another exporter from Shengshida Investments in Changsha, Hunan Province confirms the price decrease, quoting RMB4,829/t (USD760) (VAT included) FOB Shanghai Port for the above grade.
The source attributes it to lowering prices of raw materials, as well as the weak demand from oversea buyers. The export volume of steel products for July is 43.2 million tons, decreasing by 2.8% over that of the same period of last year. Being unconfident of the forthcoming market, he has reduced his stock from 50,000t to 35,000t by selling on credit with the purpose of avoiding potential risks. He does not believe that the price is likely to rebound in the near future.
A sales official from Luxing Pipe, a medium-sized seamless pipe producer and exporter in Shandong Province tells Asian Metal that the export price of API 5L GRB Φ219*8mm is RMB4,950/t (USD777) (VAT included) FOB Qingdao Port at the moment, down by USD23/t over that of the previous transaction day.
Treating Europe as the major export market, the source’s sales volume saw a decline in past few weeks, which is currently 1,000-1,500tpm, while it is over 5,000tpm in the peak season. According to the data released by World Steel Association (WSA), affected by the weakened economic outlook of Europe, the global steel production in July barely reached 78.7% of the capacity of iron and steel enterprises, down by 0.8% compared with that during the same period of last year.
Besides, he discloses that he has newly set up a department within his company, being responsible for sales in Southeast Asia. “We aim to expand our business in local markets,” said the source, “Apart from a considerable demand of Chinese pipes, these regions pose fewer obstacles to Chinese products.”
Another exporter from Shengshida Investments in Changsha, Hunan Province confirms the price decrease, quoting RMB4,829/t (USD760) (VAT included) FOB Shanghai Port for the above grade.
The source attributes it to lowering prices of raw materials, as well as the weak demand from oversea buyers. The export volume of steel products for July is 43.2 million tons, decreasing by 2.8% over that of the same period of last year. Being unconfident of the forthcoming market, he has reduced his stock from 50,000t to 35,000t by selling on credit with the purpose of avoiding potential risks. He does not believe that the price is likely to rebound in the near future.
