TEX reported that export price of welded line pipes for Asia seems to maintain the level of more than USD 1,200 FOB. As regarding hot coils of its material, China's major mills decreased the domestic price for May shipment and Baoshan Iron and Steel maintained that level for June 2011 shipment, it has been concerned that the price of welded pipes in the Asian area become weak.

At present, each customer is bidding less USD 50 to USD 100 for July shipment. However, the Japanese mills increase their quotation prices to USD 1,300 FOB against requirement of price reduction by a customer. In the backdrop, it is because demand on energy is strong.

And it is also its background that as POSCO of Korea increased the price of hot coils by KRW 160,000, the Korean forming mills will be forced to raise their prices of welded pipes for next quarter.

As for energy related, the price of plates for a shipbuilder is said that USD 950 FOB is the standoff line between a seller and buyer. However, as the standoff price of UO pipes is more than USD 1,500 FOB for 40 in OD, and USD 1,600 FOB for 20 in OD, the price of plates, material of UO pipes can be quoted at around USD 1,200 FOB naturally.

(Sourced from TEX Report Limited)