Price tension, scarce availability of material and good levels of real demand - thus may be summed up the current state of affairs in Italy's welded tubes and tubular goods sector.
Traders in this sector report that since December 2007 the prices of the products in question have registered a breathtaking surge of around €140-150/mt.
The causes of these increases should be sought, in the first place, in the price hikes in flat rolled coils both in the international and domestic markets, due in turn to the rises in costs such as raw materials, energy, and freight rates. In second place, at the present time the Italian domestic market is experiencing a scarcity of available material. Producers' stocks are low and uneven, while tubemakers are complaining about difficulties in obtaining supplies and about delays in deliveries.
Apparent demand in the market, however, appears calm, helped by the strong levels of purchases completed in January. Real demand, on the other hand, is fairly active.
With regard to the near future, the feeling among traders is that there will be a further rise in quotations for welded tubes. This belief is reinforced by the fact that the main European producers have already sought increases for their flats products to be effective as of the first of April. Such increases will probably be reflected in the prices of tubes and tubular goods.