In June Ukrainian seamless pipe producer Interpipe was the first among CIS producers to switch from an upward price trend to a downtrend due to slack buying activity and lower production costs. However, this month Interpipe has not changed its export offers but has kept them at the previous levels. In the meantime, other CIS seamless pipe producers have followed the downward price trend initiated by Interpipe. Thus, Dnepropetrovsk Tube Works has decreased its export prices by $220-230/mt over the past month. Some Russian mills have reduced their export offers of seamless pipes by $50-140/mt over the same period. Seamless pipe exports from the CIS are expected to be sluggish in the coming month due to the slack economic recovery in the international markets and traders' high stock levels. In Europe and the Middle East the summer season and the month of Ramadan will lead to a fall in exports of seamless pipes from the CIS. The downward price trend may be last until the end of the summer. However, in September demand for and prices of seamless pipes are expected to increase in the global market.
For Ukrainian seamless pipe mills the cost of semis remains the key factor determining their price policy. Offers of round billet from Ukraine's Dneprovsky (Dzerzhinsky) were being given to Ukrainian mills at $515/mt ex-works for June production, while billet from OEMK (Russia) were available to Ukrainian mills at $515/mt DAF. It is expected that in July-August prices of round billets for Ukrainian mills may go down to $480-500/mt ex-works or DAF respectively.
Export prices from Ukrainian mill Interpipe for July production hot-formed seamless pipes of 42-377 mm diameter, of 10, 20 steel grades, as per GOST 8731/8732, currently vary in the range of $870-900/mt FOB. 2"-10" seamless pipes of grade B, as per ASTM A106/API 5L, are offered by the same producer at an average of $880-930/mt FOB.
Export offers of August-September production seamless pipes of 70-168 mm diameter, of 10, 20 steel grades according to GOST 8731/8732 from Ukraine's Dnepropetrovsk Tube Works are at $950-980/mt FOB. SteelOrbis has learned that export prices for seamless pipes of 33.7 mm outside diameter, of 10, 20 steel grades according to GOST 8731/8732 are at around $1,050/mt FOB, while the same size of seamless pipes of grade St52 made to DIN 2448/1629 are at $1,150/mt FOB.
There are no export offers from Russian seamless pipe producer Uraltrubostal (Pervouralsky Novotrubny Works) for the moment as it is going to decrease seamless pipe prices in line with the declines in round billet quotations. Uraltrubostal has quoted for export July-August production 3"-8" seamless pipes made to ASTM A106 from grade B at $980-1,000/mt FOB.
Export prices for July-August production seamless hot-formed pipes with diameter up to 219 mm of 10, 20 steel grade made to GOST 8731/8732 from Russian producer TMK's subsidiary Volzhsky Pipe Plant are at about $950-960/mt FOB. Seamless pipes with diameter 114-219 mm of 10, 20 steel grade made to GOST 8731/8732 from Tagmet are quoted in the range of $950-960/mt FOB. Seamless hot-formed pipes with diameter 70-168 mm, 10, 20 steel grade, made to GOST from Sinarsky PP are quoted at $1,025-1,050/mt FOB. Export offers of seamless hot-formed pipes with diameter 219-355 mm made to GOST by Seversky PP are at $1,020-1,050/mt FOB. Export prices from Seversky PP for seamless pipes with diameter 219-355 mm of grade B made to ASTM A106 are at $1,060-1,080/mt FOB.