Italian mills raise welded pipe quotations despite weak demand

Friday, 12 March 2010 10:25:54 (GMT+3)   |  
       

Over the past month the Italian welded pipe market has observed a stronger increase trend in prices in spite of weak demand. The main reason for the rise in welded pipe prices is the higher prices for flat products which have jumped up since the middle of January. Domestic prices of welded pipes in Italy have increased by €20-80/mt depending on the producer. Export quotations of Italian welded pipes have risen by €70-80/mt over the past month. Given the sluggishness of purchasing activity, Italian welded pipe mills are struggling to gain acceptance for the increases and to pass on their rising production costs. Meanwhile, foreign suppliers have raised their quotations in line with Italian producers. Thus, Turkish welded pipe offers for Italy have gone up by €60/mt, Indian suppliers have raised their offers for Italy by €75-80/mt, while prices for Bulgarian welded pipes have risen by €50-90/mt. Welded pipe prices in Italy are expected to continue to rise in the coming period, but the duration of the upward trend will depend on the strength of demand.

Current local prices for Italian welded pipes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from base steel grade S235JR HR coils are at about €550-570/mt ex-works (here and below on a theoretical weight basis and excluding 20 percent VAT). Italian producer Arvedi's quotations for welded pipes up to 8" of L235 steel grade as per EN 10208, used for combustible fluids, are at €600-620/mt delivered for March-April production. Offers from Italian mill Ilva for the same pipes of 8"-12" size of L290/L360 steel grade are at an average of €650-660/mt delivered (€610-620/mt ex-works) for April production. Pickled pipes of sizes up to 6" from Italian producers are being offered to the domestic market at around €600-650/mt ex-works, with galvanized pipes at about €710-750/mt ex-works. Domestic prices for standard-size precision welded tubes E235 grade as per EN 10305-3 are at about €700/mt ex-works.

Current local offers of precision welded thin wall pipes made to EN 10305-3 are at €800/mt ex-works for pipes made from CRC DC01 grade (in particular, 60 x 1.0 mm and 102 x 1.2 mm pipes) and at €850-900/mt ex-works for pipes made from HRC S235JR grade (in particular, 154 x 1.5 mm and 219 x 2.5 mm pipes). Large diameter welded pipes (in particular, 280 x 3.0 mm) are quoted at about €1,100/mt ex-works.

Export quotations of Italian 2"-6" welded pipes as per EN 10219 are at about €580-600/mt FOB (transportation by sea) or €550-570/mt ex-works (transportation overland). In particular, offer prices for Spain are in ranges of €600-630/mt C&F or €580-600/mt CPT.

Offers from Turkish suppliers of industrial welded pipes with 2-4 mm wall thickness made from HR coils are being given at an average of €540-560/mt C&F to Italy and €550-570/mt C&F to Spain. The prices of Turkish welded pipes with 1.5 mm wall thickness made from CR coils are at about €610-630/mt C&F to the Italian market and at €620-640/mt C&F to the Spanish market.

Quotations of Indian black welded pipes of 1"-6" size as per BS 1387 or DIN 2440/2444 or EN 10255 to the Italian market are at the level of €680-700/mt C&F. Offer prices of Romanian welded pipes (ArcelorMittal) up to 10" of L235 steel grade as per EN 10208 are at about €600/mt including delivery inside Italy. Offers of Bulgarian welded pipes to the Spanish market are standing at an average of €570-620/mt CPT.


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