Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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December 2014 | Seamless Steel Tube & Pipe


Chinese OCTG prices continue to fall: Asia Market Analysis


Billet prices have been falling in China, but any profit margin this would have been provided to Chinese seamless mills has been wiped out by the ever declining OCTG offer prices.

China’s prices of seamless OCTG have fallen even further this month, despite already being significantly below comparable international standards. This month 7” OD J/K55 casing prices are down at $715-750/tonne fob, this represents a fall of around $20-55/tonne from last month. Prices for a API P110 grade at 5 ½” OD with a premium connection from the Chinese market is now being offered at $1,200/tonne fob. Encouragingly this price has remained unchanged from last month.

Billet prices have been falling in China, but any profit margin this would have been provided to Chinese seamless mills has been wiped out by the ever declining OCTG offer prices.

As MBR has noted, domestic demand for OCTG is at record low levels in China which has forced seamless mills to try to be even more export focused in this market. As a result, many...

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