Demand for Bulgarian welded pipes from both local and foreign buyers remains slack and prices have continued to go down. Over the past two weeks, domestic prices for Bulgarian welded pipes have decreased by €20/mt, while export prices have moved down by €20-30/mt. Though the Bulgarian metallurgical sector has started to record growth again, the growth in question is very modest and it is far from reaching pre-crisis levels. A mix of global slowdown, restricted financing and withdrawal of investors has brought Bulgaria's construction sector almost to a standstill. Up to the end of the year the Bulgarian welded pipe market will likely continue to be soft. Meanwhile, market participants hope that the spring next year will bring the first signs of recovery. These hopes rely entirely on European Union funds, which may finance transport, environment, regional development and agriculture projects.
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade hot rolled coil (HRC) according to EN 10219 are being given to the domestic market at around €560-580/mt ex-works, exclusive of 20 percent VAT and on theoretical weight basis. Domestic quotations of water and gas ERW pipes made to EN 10255 are at €580-600/mt ex-works.
Export quotations of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are at the level of €550-570/mt ex-works on a theoretical weight basis for November-December production. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €570-590/mt ex-works.