The fall in inventory levels accompanied by the slight but marked improvement in demand has caused flat product prices to rise in Eastern Europe. ArcelorMittal's mills are already offering HRC in Eastern Europe at €350-360/mt ex-works. As a result, as of July 1 most Bulgarian producers of ERW pipes and hollow sections have increased domestic and export prices by €10-20/mt compared to the levels of two weeks ago. After July 15 market insiders foresee a second wave of price increase for welded pipes, by a margin of €10-15/mt depending on the market situation.
Current Bulgarian domestic prices for local production electro-welded steel pipes and hollow sections of 2-5 mm wall thickness according to EN 10219 made from S235JR grade HR products are at about €420-425/mt ex-works, exclusive of 20 percent VAT and on actual weight basis. Bulgarian ERW pipes and hollow sections of 0.9-1.4 mm wall thickness made from DC 01 grade CRC are currently quoted in the local market at €515-520/mt ex-works.
Export prices for Bulgarian ERW pipes and hollow sections of 1.8-6 mm wall thickness made from S235JR grade HRC are at about €400-420/mt ex-works on a theoretical weight basis. In particular, offers of Bulgarian ERW pipes to Germany and Poland are being given at €440-460/mt CPT, while they are being given to Romania at €415-435/mt CPT, to Spain at €490-510/mt CPT, and to Sweden at €500-520/mt CPT. Export quotations of pipes of 1.5 m wall thickness made from HRC are at €520/mt ex-works.
Bulgarian ERW pipes of 0.9-1.4mm wall thickness made from DC 01 grade CR steel are priced in the foreign markets at about €495-520/mt ex-works. Export prices for galvanized ERW pipes made to DIN 2440/2444 are at €690/mt ex-works.
Offers of Turkish ERW pipes of 2.4 mm wall thickness made from HRC were offered to the Bulgarian market at €435-455/mt CPT, but now Bulgarian consumers are expecting a price increase for Turkish welded pipes.