Demand for ERW pipes in the Bulgarian domestic market remains at low levels. Nevertheless, local welded pipe producers are trying to keep their market share. While welded pipe inventory in the Bulgarian market is rather low, traders are very cautious about making large purchases due to the uncertain market situation and so only buy material they need very badly. Over the past two weeks the lowest end of domestic prices has declined by €10/mt. Export quotations of Bulgarian welded pipes have also decreased over the period under review, by €10-20/mt, due to the ‘dead season' in Europe, which is the main destination for Bulgarian exports.
It looks like the Bulgarian welded pipe market will remain silent throughout December, though buying activity is expected to increase through January. Suppliers of HR coils from Ukraine have tried to raise their offers to Bulgaria by around €15-20/mt for January production despite weak demand, and are currently offering this material at €370-390/mt C&F. At the same time, domestic prices of locally produced HR coils are standing at about €330/mt ex-works. As a result, due to the anticipated improvement in demand for welded pipes in January and rising offer prices for feedstock material, welded pipe producers in Bulgaria expect price increases for their material at the beginning of next year.
Domestic quotations of welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC according to EN 10219 are at the level of €420-450/mt ex-works, exclusive of 20 percent VAT and on actual weight basis. Domestic prices of water and gas ERW pipes made to EN 10255 are at €450-480/mt ex-works. Offers of ERW pipes of 1.5 mm wall thickness made from HRC are being given to the domestic market at €470-500/mt ex-works.
Export offers of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are being given at about €400-420/mt ex-works on a theoretical weight basis. Export prices of ERW pipes of 1.5 mm wall thickness made from HRC are at around €500/mt ex-works.
Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €420-440/mt ex-works.