Bulgarian suppliers of welded pipes have had no choice but to continue to cut their prices amid extremely slack demand in both the domestic and export markets. Over the past two weeks, domestic quotations of welded pipes from Bulgarian producers have decreased by €25/mt ($45/mt), while export offers have declined by €40-50/mt ($64-77/mt). Local and foreign buyers are pushing Bulgarian pipe producers for even further decreases in line with the international downturn, but sellers are resisting because of their low margins. Conditions in the Bulgarian welded pipe market are not expected to improve in the near future. Buyers are uncertain given the weakness of the construction sector and the limited number of infrastructural projects in the region in the context of the ongoing debt crisis in Europe. In such market conditions, Bulgarian producers are likely to adjust welded pipe prices downward again or cut their production.
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade hot rolled coil (HRC) according to EN 10219 are being given to the Bulgarian domestic market at around €560-565/mt ($704-710/mt) ex-works, exclusive of 20 percent VAT and on theoretical weight basis.
Export quotations of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are at the level of €500-520/mt ($628-653/mt) ex-works on theoretical weight basis for June production. Offers of similar Bulgarian pipes with wall thickness of 1.5 mm made from HRC as per EN 10219 are at around €530-550/mt ($666-691/mt) ex-works for June rolling. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €520-540/mt ($653-679/mt) ex-works.
€1 = $1.257