Demand for seamless pipes from the CIS is still slack in foreign markets. Facing poor foreign demand, export prices for Ukrainian seamless pipes have declined by $20-50/mt over the past month. At the same time, Russian producers have increased their export offers by around $20-30/mt based on the favorable situation in their domestic market.
Market insiders expect seamless pipe exports to surge soon amid a seasonal pickup in overseas demand anticipated in the second half of March and in April. The expected improvement in the foreign seamless pipe markets will allow Russian and Ukrainian mills to raise their export quotations for seamless pipes.
Export prices from Ukrainian mill Interpipe for March production hot-formed seamless pipes of 42-219 mm diameter, of 10, 20 steel grades, as per GOST 8731/8732, currently vary in the range of $960-1,000/mt FOB, while seamless pipes made to ASTM A106/API 5L are quoted at around $980-1,050/mt FOB.
Export offers of March production seamless pipes of 57-168 mm diameter, of 10, 20 steel grades according to GOST 8731/8732 or ASTM A106 from Ukraine's Dnepropetrovsk Tube Works are at $950-970/mt FOB, while export prices of 42-48 mm diameter are at $970-990/mt FOB.
ChTPZ Group's export quotations for March production hot-formed pipes with diameter of 60.3-114.3 mm made to GOST 8731/8732 from 10, 20 steel grades or as per ASTM A106 are at $950-980/mt FOB, while pipes of 168.3 mm diameter are also in the range of $950-980/mt FOB but for August 2013 output.
Seamless pipes with 60.3-168.3 mm diameter of steel grade 10, 20 as per GOST or ASTM from Volzhsky pipe plant (TMK Group) are quoted in the range of $1,000-1,050/mt FOB.
Seamless pipes with diameter 60.3-114.3 mm of grade B made to API 5L from Sinarsky PP (TMK Group) are offered for export on average at $1,360-1,380/mt FOB for production in June.