Bulgarian pipe companies continue to focus on foreign markets, while buying activity in the domestic market has remained on the weak side. It is reported that a large number of firms in construction, transport, light industry, services and commerce in Bulgaria are accumulating big losses. The two major problems resulting from the economic crisis for Bulgarian firms are the reduction of their output and increased levels of debt between companies. Domestic and export prices of welded pipes from Bulgarian producers have remained unchanged over the past two weeks, but are expected to drop down due to the weaker market and falling prices for flat products. In particular, July production HRC from Midland (Ukraine) is now being offered to Bulgarian pipe producers at €435/mt ($545/mt) FOB Izmail.
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC according to EN 10219 are being given to the domestic market at around €610-620/mt ex-works, exclusive of 20 percent VAT and on actual weight basis. Offers of similar pipes with wall thickness of 1.5 mm made from HRC are in the range of €650-660/mt ex-works. Domestic quotations of water and gas ERW pipes made to EN 10255 are at €630-640/mt ex-works.
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 €560-600/mt ex-works on actual weight basis for July production. Offers of similar pipes with wall thickness of 1.5 mm made from S235JR grade HRC as per EN10219 are in the range of €610-650/mt ex-works. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €600-620/mt ex-works.