The seamless pipe market in Spain is still depressed because of the difficult economic situation in the country. There are no signs of fresh demand in the Spanish seamless pipe market. Domestic quotations of seamless pipes have decreased by €30-60/mt over the past month. Despite limited demand, over the period under review import prices for Chinese seamless pipes have climbed up by €100/mt while Ukrainian offers have risen by €10-50/mt.
Current domestic prices for 2"-5" hot-formed seamless pipes grade B made to ASTM A106/API 5L are at around €870-920/mt ex-works, while 6"-8" pipes are at about €970-1,020/mt ex-works.
Prices for Chinese seamless pipes, 2"-6" grade B made to ASTM A106/API 5L, are at about €650-680/mt C&F, exclusive of antidumping duties (in the range of 17.7-39.2 percent depending on the producer).
Offers of Ukrainian seamless pipes, 2"-6" grade B made to ASTM A106/API 5L, are at €760-770/mt DDU, while offers of 8"-12" pipes are at €800-810/mt DDU. These prices are exclusive of 25.1 percent antidumping duty.
Quotations of Italian seamless pipes, 2"-5" grade B made to ASTM A106/API 5L, to Spain are at €930-980/mt CPT.
In 2009 Spanish GPD per capita shrank by 3.8 percent from 2008, ending a 16-year growth trend. The reversal in Spain’s economic growth reflects the significant decline in the construction sector, falling consumer spending and slumping exports. Government efforts to boost the economy through stimulus spending, tax breaks and loan guarantees have not reduced the unemployment rate, which is one of the highest in the EU. Market players think that any recovery in seamless pipe demand may take time as the market waits for the government stimulus aid to take hold. Much depends on whether the stimulus programs designed to expand infrastructure will indeed be implemented as proposed. However, Spain’s current strong fiscal adjustment program is a positive for the country.