Sluggish construction sector impacts demand in Italian welded pipe market

Thursday, 27 March 2014 15:36:11 (GMT+3)   |  
       

The welded pipe market in Italy has remained quiet with buying activity at low levels. Against the backdrop of sluggishness in the construction sector, Italian pipe producers report low order levels despite poor market inventories. However, Italian suppliers have not revised their domestic and export prices for welded pipes over the past month given relatively stable feedstock costs and weak demand. Import offers of welded pipes from Turkey have decreased by €10/mt ($14/mt) over the past month, while offers of Bulgarian materials have gone down by €10-20/mt ($14-28/mt) in the same period. Although welded pipe suppliers in Italy may attempt to raise their quotations in the coming period amid low inventories and expected higher demand from the construction sector, market insiders do not predict any significant surge in prices, as flat steel quotations so far appear unlikely to move up and as market sentiment is very weak in the country.
 
Current local prices for Italian ERW cold formed tubes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from base steel grade S235JR hot rolled coil (HRC) are at about €540-580/mt ($745-800/mt) delivered. Prices are shown on theoretical weight basis and excluding 21 percent VAT.
 
Export quotations of Italian 2"-6" welded pipes as per EN 10219 are at about €570-600/mt ($788-829/mt) FOB (transportation by sea) or €550-580/mt ($759-800/mt) ex-works (transportation overland). In particular, offer prices for Spain are in the range of €580-620/mt ($800-856/mt) CPT.
 
Offers from Turkish suppliers of industrial welded pipes with 2-4 mm wall thickness made from HR coils are being given at an average of €480-500/mt ($662-690/mt) CFR to Italy and at €490-520/mt ($676-718/mt) CFR to Spain.
 
Offers of Bulgarian welded pipes to the Italian market are standing at an average of €550-580/mt ($759-800/mt) CPT on theoretical weight basis.
 
€1 = $1.38

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