Higher costs provide support for sluggish Bulgarian welded pipe market

Wednesday, 03 September 2014 14:46:09 (GMT+3)   |  
       

Buying activity has been poor in the Bulgarian welded pipe market over the past two weeks as the holiday season has continued to impede demand. However, Bulgarian welded pipe producers have not cut their prices citing higher production costs. Bulgarian welded pipes are currently being offered to the domestic market at BGN 10/mt (down $4/mt) higher than two weeks ago, while export quotations for Bulgarian welded pipes have increased by a maximum of €10/mt ($13/mt) over the past two weeks. Demand for Bulgarian welded pipes in Europe is expected to rise moderately during the remainder of the year as a number of end-user segments may start to improve gradually and show a better performance. Also, better weather conditions will likely help to boost activity. Meanwhile, market players believe only modest price rises may be achieved, barely covering an anticipated slight rise in the cost of raw materials.
 
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade hot rolled coil (HRC) according to EN 10219 are being given to the Bulgarian domestic market at around BGN 980-1,000/mt ($658-671/mt) ex-works, exclusive of 20 percent VAT and on theoretical weight basis.
 
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 levels of €470-510/mt ($617-670/mt) ex-works on theoretical weight basis. In particular, export offers of Bulgarian pipes to Germany are at levels of €470-480/mt ($617-630/mt) ex-works, while offers to Poland are at €490-510/mt ($643-670/mt) ex-works. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €490-530/mt ($643-696/mt) ex-works.
 
$1 = BGN 1.489
€1 = $1.313

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