Worsening conditions in the European welded pipe market have made Polish producers revise their prices downwards. Domestic and export offers of Polish welded pipes have decreased by €40-50/mt over the past month on the back of lower production costs and lack of demand. Polish suppliers will likely have to reduce welded pipe prices by another €30-50/mt since the downward trend in the region is forecast to continue. Despite the relative improvement in construction activity in Poland compared to the first quarter of this year, construction confidence deteriorated during the second quarter and over the summer, reflecting increasing pessimism on the current business situation and as regards expectations for the coming months.
Current offers of locally produced welded pipes and hollow sections made from S235JR grade HRC according to EN 10219 are being given to the domestic market at around €660-700/mt ex-works, exclusive of 22 percent VAT.
Export quotations of Polish ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are at the level of €620-660/mt FCA. Offers of similar pipes with wall thickness of 1.5 mm made from S235JR grade HRC as per EN10219 are in the range of €650-700/mt FCA.