Export demand for standard seamless pipes from the CIS remains slack amid the unfavorable economic environment and the seasonal decline in business activity during the holiday season in Europe and the US, and with the approach of Ramadan in the Middle East. However, export prices of seamless pipes have not been changed much given strong support from the oil and gas sector in the Russian domestic market and high production costs in Ukraine.
Export offers of seamless pipes from Russian producer TMK have remained unchanged over the past month. Meanwhile, export quotations of seamless pipes from Russian producer Uraltrubostal have declined by a maximum of $20/mt, while Ukrainian producers have left their offers almost unchanged with a maximum decrease of around $15-20/mt over the past month.
CIS seamless pipe producers will likely keep their export prices stable in the coming month, expecting demand to strengthen only in the third quarter.
Export prices from Ukrainian mill Interpipe for July-August production hot-formed seamless pipes of 42-114 mm diameter as per GOST or ASTM currently vary in the range of $1,080-1,120/mt FOB, while quotations of pipes of 168-325 mm diameter are at $1,120-1,150/mt FOB.
Duferco is offering seamless pipes (Dnepropetrovsk Tube Works, Ukraine) of 42-168 mm diameter as per GOST at around $1,080-1,150/mt FOB from July-August production, while pipes with 33.7 mm diameter are quoted for foreign customers at around $1,200-1,230/mt FOB.
Export offers of July-August production seamless hot-formed pipes with diameter of 57-245 mm made to GOST or ASTM from Russian producer TMK's subsidiary Volzhsky Pipe Plant are at $1,030-1,050/mt FOB.
Seamless pipes with 60-219 mm diameter as per GOST or ASTM from Tagmet (TMK Group) are quoted in the range of $1,060-1,070/mt FOB.
Seamless hot-formed pipes with diameter of 73-168 mm made to GOST from Sinarsky PP are quoted at $1,160-1,180/mt FOB.
Export offers of Russian seamless pipes of 48-219 mm diameter, made to GOST, from Uraltrubostal (Pervouralsky Novotrubny Works) are at $980-1,000/mt FOB, for August-September output.