Poor demand and low feedstock costs impact Polish welded pipe market

Tuesday, 18 March 2014 11:24:29 (GMT+3)   |  
       

Activity in the Polish welded pipe market has remained sluggish amid ongoing low demand from consuming industries. Polish welded pipe producers have reduced their domestic prices by €10-15/mt ($4-8/mt) over the past month amid poor demand and lower feedstock costs. During the given period, quotations of Italian material for the Polish market have decreased by €20-30/mt ($10-25/mt), while Bulgarian suppliers have decreased their offers for Polish customers by €15-20/mt ($7-13/mt). Market insiders think welded pipe suppliers in Poland are unlikely to implement any price increase in the short term given the present market situation.
 
Current domestic quotations of locally produced 3/8"-6" water and gas ERW pipes of 2.6-4.5 mm wall thickness made to EN 10255 are at €630-655/mt ($874-909/mt) delivered, exclusive of 23 percent VAT. Offers of square and rectangular hollow sections with 2-4 mm wall thickness made from S235 JRH grade hot rolled coil (HRC) according to EN 10219 are in the range of €510-530/mt ($708-736/mt) ex-works. ERW galvanized pipes made to EN 10240 are quoted for local customers at €830-840/mt ($1,152-1,166/mt) delivered.
 
Quotations of Italian black welded pipes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from S235JR grade HRC to the Polish market are at levels of €600-640/mt ($833-888/mt) CPT on actual weight basis.
 
Offers of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 to Polish customers are standing at an average of €545-570/mt ($756-791/mt) CPT on theoretical weight basis.
 
€1 = $1.39

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