Ahead of the summer holidays in Europe Bulgarian welded pipe producers have increased their prices again as raw material costs are still trending up. For reference, August prices of HR coils from local producer Kremikovtzi are at around €345-350/mt ex-works compared to €300/mt ex-works for July production. Ukrainian suppliers of flat products to Bulgaria have also increased their offer prices, by €40/mt, up to €360-370/mt ex-works.
As a result, Bulgarian mills' prices for welded pipes in the foreign markets, which take precedence over the domestic market at the moment, have been raised by €10-40/mt over the past two weeks. Domestic prices have also risen by a maximum of €30/mt; however, buying activity from domestic consumers remains weak. Indicative quotations of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC are at about €410-450/mt ex-works, exclusive of 20 percent VAT and on actual weight basis.
Current export prices of Bulgarian ERW pipes and hollow sections of 1.8-6 mm wall thickness made from S235JR grade HRC are at about €410-460/mt ex-works on a theoretical weight basis. In particular, offers of Bulgarian ERW pipes to Germany and Poland are being given at €450-500/mt CPT, while they are being given to Spain at €540-550/mt CPT, to Sweden at €520-560/mt CPT, and to Romania at €425-475/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 made to DIN 2440/2444 are priced in the foreign markets at about €730/mt ex-works.
Market participants believe that the abovementioned price increases by Bulgarian welded pipe producers are the last price hikes to be seen this summer and that any further rise will only be possible after the holiday season is over.