During the past month increased buying activity has been observed in Poland's welded pipe market as a result of lower prices and lack of offers, as Polish pipe maker Huta Pokoj S.A. has already closed its July order book. Domestic offers of Polish welded pipes as per EN 10219 have decreased by €30/mt over the past month. Import offers of Italian welded pipes have moved down by €10-20/mt over the same period. Bulgarian suppliers have maintained their welded pipe quotations at previous levels. However, Polish welded pipe producers may try to raise their quotations in the coming month due to higher feedstock prices. Meanwhile, it is clear that, on the eve of the summer holiday season and considering the fairly high inventory levels, pipe makers should be extremely cautious in their pricing policies.
Current domestic quotations of locally produced 3/8"-6" water and gas ERW pipes of 2.6-4.5 mm wall thickness made from S235JR grade HRC according to EN 10255 are at €730-750/mt delivered, while pipes of 2.0-2.3 mm wall thickness are at €740-760/mt delivered for July production, exclusive of 23 percent VAT. ERW galvanized pipes made to DIN 2440/2444 are quoted for local customers at a minimum of €930-940/mt delivered.
Quotations of Italian black welded pipes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from steel grade S235JR HR coils to the Polish market are at the level of €690-730/mt CPT.
Offers of Bulgarian ½"-3" ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 to Polish customers are standing at an average of €635-660/mt CPT on theoretical weight basis for July production.
Market players report that the Polish construction sector is experiencing an expansion, for the first time since 2008. According to analysts, this year the volume of construction work in Poland will increase by 11 percent due to the implementation of large civil engineering projects for the Euro 2012 football tournament, water and power utilities and sewage discharge projects, as well as increased construction of residential and commercial buildings. As a result, market players are optimistic about the prospects for steel consumption in the country this year, including steel pipe consumption.