The Italian market for welded tubes and tubular goods has not yet emerged from its phase of uncertainty. After the decline in prices observed over previous weeks, the market had regained its stability. However, the expected rebound in quotations has not taken place yet.
According to the players in the market, the lack of an upturn in prices is to be ascribed to the weakness of demand (both real and apparent). Demand from end-users, though varying widely across Italy, is currently below the usual level for the time of the year. Furthermore, traders are limiting themselves to the strict minimum required to meet their daily needs, aided in this approach by the plentiful availability of material in producers' retail warehouses.
Looking ahead to the coming weeks, the market is expecting an attempt by producers to reduce their discounts by a certain margin in order to recuperate the increased sums they have recently been paying for coils. This maneuver, however, will probably meet with some resistance, especially given the unexceptional activity levels of end-users. On the other hand, the traders' low levels of inventory could give tube producers a helping hand, by causing traders to resume their purchases once the market begins to emit clearer signals.