Demand for seamless pipes in the Romanian market remains at a low level. It is thought that Romania may emerge from the recession in the second half of this year, but that the recovery will be fragile with a maximum one percent increase. Therefore, Romania has the opportunity to rethink its growth model and focus on an export-driven recovery. Domestic and export quotations of Romanian seamless pipes have increased by €90-100/mt over the past month amid higher raw material costs. 2010 remains a very challenging year for Romania, and policymakers' responses will be crucial as regards restoration of consumer confidence, revival of the labor market, economic growth, financial consolidation and stabilization of currency exchange. Market participants expect seamless pipe prices in Romania will continue to follow an upward trend on the back of rising production costs and the recovery in the international market.
Current local prices for May production seamless pipes of ½"-4" size of grade B as per ASTM A106 or EN from Romanian producer TMK-ARTROM are at about €900-950/mt ex-works (here and below on a theoretical weight basis and excluding 19 percent VAT). Seamless pipes of 6"-10" size made to EN 10216 from ArcelorMittal Roman are quoted to the domestic market at €900-920/mt ex-works.
Export prices from Romanian mill TenarisSilcotub for May production hot-formed seamless pipes of 1 ½"-2" size, of grade B, as per ASTM A106, currently vary in the range of €1,070-1,100/mt FCA, while 2 ½"-5" seamless pipes are at €1,000-1,020/mt FCA. Export offers of 12" seamless pipes of grade B made to ASTM A106/API 5L are being given by ArcelorMittal Roman to the external markets at around €950-970/mt FCA.
Prices for import seamless pipes 2"-6" in diameter of grade St.37.0 made to DIN 2448/EN 10220 from ArcelorMittal Ostrava are within the range €900-955/mt CPT for May output.