Bulgarian welded pipe prices halt their rising trend

Thursday, 17 September 2009 11:35:33 (GMT+3)   |  
       

The domestic market for welded pipes in Bulgaria is still seeing weak buying activity. Domestic and export prices for welded pipes have remained unchanged compared to two weeks ago. Following the latest news in the Bulgarian steel market regarding the bankruptcy of Kremikovtzi, Bulgarian pipe producers are concerned about the lack of flat product supplies. They think that foreign suppliers may try to increase quotations due to the lack of material in the market. In this event, welded pipe producers will be in difficult situation, struggling to cope with both higher raw material costs and slack end-user demand. A representative of one Bulgarian pipe producer commented, "Kremikovtzi canceled all deliveries of coils ordered by us, due to the lack of scrap material. Now we are in a very bad situation and, as a manufacturer, we have to buy coils at a very high price just in order to keep working. That is why until the end of September we will sell only under 100 percent advance payment terms."

Domestic prices of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC are at about €460-470/mt ex-works, exclusive of 20 percent VAT and on actual weight basis.

Current export offers of Bulgarian ERW pipes and hollow sections of 1.8-6 mm wall thickness made from S235JR grade HRC are at about €460-470/mt ex-works on a theoretical weight basis. In particular, offers of Bulgarian ERW pipes to Germany and Poland are being given at €500-510/mt CPT, while they are being given to Spain at €550/mt CPT, to Sweden at €560-570/mt CPT, and to Romania at €475-485/mt CPT.

Export offers of ERW pipes of 1.5 mm wall thickness made from HRC are being given at around €560/mt ex-works.

Export quotations of Bulgarian ERW pipes of 1.2-1.4 mm wall thickness made from DC 01 grade CRC are at €560/mt ex-works. Galvanized ERW pipes from Bulgaria made to DIN 2440/2444 are priced in the foreign markets at about €730/mt ex-works.


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