February 2018 | Welded steel tube & pipe
Saudi 5-year linepipe supply agreement to yield opportunities: Middle East and North Africa Market Analysis
Underlying linepipe demand is firm in Saudi Arabia as the country progresses on its 2030 vision, meaning that it has one of the strongest large-diameter linepipe markets across the Middle East region.
ERW linepipe offers rise
The welded linepipe market in the Middle East continues to improve driven by an excellent performance of the E&P segment due to an ongoing recovery in crude oil prices and production growth. Offers of ERW linepipe in a diameter of 8-16 OD at an API 5L b grade from South Korea are being received at $820-850/tonne cfr Jebel Ali, registering a $20-25/tonne increase month-on-month. South Koreas linepipe and OCTG producers can be affected significantly by hefty import curbs recommended under the United States Section 232 probe. If those curbs are imposed, South Korean mills will have to redirect export volumes to other markets. We believe that the most likely market for redirecting export volumes from South Korea would be the Middle East as most Korean pipe makers are focusing on linepipe and OCTG. So, the competition in the Middle Eastern market for welded linepipes and OCTG...
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