Romanian producer ArcelorMittal has raised its seamless pipe prices again, by €40-60/mt over the past month, on the back of increased raw material costs and the recovery in buyer activity. Market players say Romanian producers will continue to lift their prices due to the continuing rise in raw material costs. Romanian industrial output has risen, supporting the government's prediction that the economy will emerge from recession this year. Growing demand from Western Europe, Eastern Europe's main trading partner, has boosted Romanian exports, fuelling demand for seamless pipes. The recovery of demand has benefited exporters, especially following the slump seen in the first half of 2009 that forced companies including steelmaker ArcelorMittal Romania SA to cut jobs or close factories. The government, which has received a $30 billion loan from a group of lenders led by the International Monetary Fund, estimates that the economy will expand by as much as 1.5 percent in 2010.
Current local prices for Romanian seamless pipes of 3"-10" size as per ASTM A106 or EN are at about €810-850/mt ex-works (here and below on a theoretical weight basis and excluding 19 percent VAT).
Current export quotations of Romanian 3"-10" seamless pipes as per ASTM A106 grade B are in the range of €800-830/mt FCA. Export offers of 6"-10" seamless pipes made to EN 10210 of steel grade S275J0H are being given by Romanian producers to the external markets at around €810-825/mt FCA, while 14" seamless pipes are at €860-870/mt FCA.
SteelOrbis has learned of offers of Romanian seamless pipes with 406 mm diameter and 30 mm wall thickness of steel grade E355 as per EN 10297/1 at €1,210/mt FCA, with delivery in June-July this year, while offers of seamless pipes with 245 mm diameter and 17 mm wall thickness are at €840/mt FCA.