Weak demand and soft scrap prices impact Spanish seamless pipe market

Tuesday, 18 February 2014 16:47:24 (GMT+3)   |  
       

A weak trend persists in the Spanish seamless pipe market due to softening demand and lower scrap prices. Domestic and export prices for Spanish seamless pipes have declined by around €20-30/mt ($27-41/mt) over the past month. At the same time, import offers of seamless pipes from China have decreased by €10-20/mt ($14-27/mt) over the same period. Import quotations of seamless pipes from Ukraine have moved up by €10-20/mt ($14-27/mt) over the period under review, while offers of Italian materials have declined by a maximum of €10/mt ($14/mt). All attempts made by seamless pipe suppliers to strengthen their positions have been fruitless as Spanish buyers are still reluctant to accept higher prices. However, despite the current low demand in the market, buying activity in the Spanish seamless pipe market is expected to rebound in spring and buyers will then likely accept price hikes.
 
Current Spanish domestic prices for 2"-4" hot-formed seamless pipes, grade B made to ASTM A106, are at around €900-980/mt ($1,232-1,342/mt) ex-works.
 
Current export prices of Spanish seamless pipes, 2"-4" grade B according to ASTM A106, are varying at around €930-1,000/mt ($1,273-1,369/mt) FOB, while 8"-10" pipes are offered at around €1,050-1,080/mt ($1,437-1,478/mt) FOB.
 
Prices for Chinese seamless pipes, 2"-6" grade B made to ASTM A106/API 5L, are at about €660-720/mt ($903-986/mt) CFR Spain, exclusive of antidumping duties (in the range of 17.7-39.2 percent depending on the producer).
 
Offers of February production Ukrainian seamless pipes, 2"-6" grade B according to API 5L, are being given to Spain at €750-770/mt ($1,027-1,054/mt) CPT. Prices are shown exclusive of 13.8 percent antidumping duty.
 
Quotations of Italian seamless pipes, 8"-10" grade B made to ASTM A106, to Spain are at €1,130-1,160/mt ($1,547-1,588/mt) CPT.
 
€1 = $1.37


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