China's seamless steel pipe exports expected to remain at high levels in May

China's seamless steel pipe exports are expected to remain at high levels in May. In April, China exported around 500,800 tons of seamless steel tubes, registering a monthly growth of 0.34% and a y-o-y growth of 98.73%. Notably, from January to April, China's seamless steel pipe exports reached nearly 2 million tons, an increase of 86.84% y-o-y.

In March 2023, the United States experienced weak demand due to adequate supply, leading to a downward trend in domestic import prices. This was the first decline since mid-2020. Lower prices in the US may cause Asian producers, excluding the EU and China, to divert their products to markets in the Persian Gulf and other regions.

Chinese producers have a significant price advantage in certain types of seamless steel products, maintaining their dominant position in the export markets of the Persian Gulf countries. Demand for these products is expected to remain high through 2023. Moreover, China's seamless pipe exports are expected to remain strong in May amid uncertainties in the global market, rising energy costs and high interest rates.