Despite the recent insignificant welded pipe price increases in the Polish market, it is expected that prices may go down in the coming short-term period due to falling prices for feedstock material and lower buying activity in the market. However, in general, market sentiment is very optimistic. A growth in domestic steel pipe output was noticed in March this year against positive changes in the world economy and also in the Polish economy.
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC according to EN 10219 are being given to the domestic market at around €690-710/mt ex-works, exclusive of 22 percent VAT. Domestic quotations of water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255 are at €710-730/mt ex-works.
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 €660-670/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 €700-720/mt FCA.
Positive changes in the country's economy and growth of demand for steel products from the domestic construction sector have given rise to predictions of increased consumption of steel in 2010. During the past three years a number of large investment project have been started in Poland. It is expected that in 2010 work will continue on these projects, which include railway transportation development and new power generating capacities. It is also expected that investments in the energy sector over the next few years could reach PLN 80 billion and this will also naturally support demand for steel in the country. The Polish banking system has suffered from the recession somewhat less than the banking sectors of other EU countries, and this makes it easier for projects to obtain credit. Thus, a strengthening of demand in Poland is expected for reinforced bars, construction profiles, cold roll-formed sections and hollow sections. Such good conditions are expected to prevail at least until 2014-2015.