Prices for round billets remain the key factor for the pricing of CIS seamless pipes. Offers of round billet from Russian producer OEMK are being given to the Ukrainian market at $660-680/mt DAF, up by $200-210/mt from the levels for March production material ($460-470/mt DAF). Offers of round billet from Ukraine's Dneprovsky (Dzerzhinsky) to Ukrainian mills are being given at $650-680/mt ex-works, compared to $500-510/mt ex-works in March. Due to the usual seasonal lull in demand for semi-finished products in summer, export prices of square billets are expected to stay at levels of $600-620/mt FOB Black Sea ports. Round billet prices will likely follow the same tendency and may stay at around $650-680/mt FOB for June production.
A rapid surge in round billet prices has sparked another price rise for seamless pipes from CIS producers. Russian seamless pipe manufacturers have lifted their prices by $60-190/mt over the past month. Despite the continuing increase in export prices of seamless pipes, customers remain active in the main export markets. Demand is expected to grow further, especially in the Middle East market where many oil and gas projects have been restarted. Buying activity in the US market will likely remain strong in the oil and gas sector. In the coming period, the export price policies of CIS seamless pipe producers will be determined by rising semis quotations (round billet) and recovering demand in the international market.
Export prices from Ukrainian mill Interpipe for May-June 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 $1,020-1,050/mt FOB. 2"-6" seamless pipes of grade B, as per ASTM A106/API 5L, are offered by the same producer at an average of $1,050-1,100/mt FOB.
Export offers of May production seamless pipes of 57-168 mm diameter, of 10, 20 steel grades according to GOST 8731/8732 from Ukraine's Dnepropetrovsk Tube Works are at $1,180-1,200/mt FOB.
The export offers of Russian seamless hot-formed pipes of 33.7-219.1 mm diameter, made to GOST, ex-Uraltrubostal (Pervouralsky Novotrubny Works) are at $1,060-1,100/mt FOB, for June output. However, currently Uraltrubostal reports the prices may increase again by $50-70/mt due to higher production costs.
Export prices for May 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 $950-970/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 $1,160-1,180/mt FOB. Seamless hot-formed pipes with diameter 73-168 mm, 10, 20 steel grade, made to GOST from Sinarsky PP are quoted at $1,170-1,190/mt FOB. Export offers of seamless hot-formed pipes with diameter 219-355 mm, made to GOST by Seversky PP are at $1,080-1,100/mt FOB.
Belarus SW (BMZ) has already sold out its May-June production of seamless pipes as per EN 10255 or EN 10210 at the base price $840/mt FCA (€660/mt) and is reported to be offering July-August production of pipes with diameter 60-168.3 mm as per EN at the base price of $890-900/mt FCA (€700/mt).