In spite of the relatively weak demand in the seamless pipe market of the Czech Republic, transaction price levels continue to climb rapidly as producers press for more and more increases to cover their growing input expenditure. Distributors are cautious about rebuilding inventories since many of their customers are reporting low activity levels. Market insiders report that very little business has been finalized at the new higher prices. Despite relatively low activity levels and poor final demand, prices are ascending in the Czech Republic. This trend is likely to continue in the coming period on the back of the rocketing raw material costs. However, the hikes are not supported by any substantial improvement in end-user consumption and there are fears that the higher prices could damage the small recovery that has begun.
Domestic prices for locally produced 14"-18" seamless pipes made to DIN 1629 are at about €1,080-1,100/mt ex-works for May production, exclusive of 20 percent VAT.
Export prices for May production of 2 ½"-10" seamless pipes made to DIN 2448/EN 10220 from ArcelorMittal Ostrava are at € 875-900/mt FCA, 2" pipes are at around €925-930/mt FCA, 1 ¼"-1 ½" seamless pipes are at €945-950/mt FCA, while ½"-1" seamless pipes are at €1,000/mt FCA.
Import offers of seamless pipes from Slovakia 2"-6" made to DIN 2440/2441 are being given to the local market of the Czech Republic at €930-950/mt CPT.