Over the past week, demand in the local European welded pipe market has weakened as buyers have started to withdraw from the market due to holidays. As the deadline of the current European Union safeguard quotas (February 3, 2019) approaches, it is still unclear how the European Commission (EC) will revise the implementation of quotas on imported steel. Therefore, market sources think that the safeguard duty investigation will be extended. Since the implementation of quotas will continue until the final result of the investigation is announced, quota for some steel producers is at critical levels and is almost exhausted. According to the EC data, 69 percent and 94 percent of the quotas for import welded pipe and hollow sections have been filled, respectively, with the quotas now closer to being used up. Consequently, demand for domestic welded pipe in the European market is expected to increase as of the coming year.
Ahead of the Christmas holiday, prices in the local European welded pipe market have remained stable over the past week. As a result, a Bulgarian steel producer’s offers for ERW pipes as per EN 10219 are still at €580-585/meter ($661-667/meter) ex-works. However deals slightly below the average range are said to be available to volume buyers. The Bulgarian welded pipe producer’s quotations to Germany are at €615-620/meter ($701-707/meter) CPT, to Hungary are at €595-600/meter ($661-667/meter) CPT, to Australia are at €605-610/meter ($690-695/meter) CPT, to Romania are at €585-590/meter ($667-673/meter) CPT, and to Belgium and the Netherlands are at €635-645/meter ($724-735/meter) CPT, while its offers to the Czech Republic, Poland, Croatia and Slovakia are standing at €620-630/mt ($707-718/mt) CPT and its offers to Slovenia are at €625-635/mt ($713-724/mt) CPT.
€1 = $1.14