German seamless pipe market may soften further

German seamless pipe producers are seeing end-user demand softening outside the auto sector. Witnessing low interest in their material, producers are trying to attract buyers by giving discounts. Market participants believe that demand for seamless pipes from German carmakers will increase in Q1 next year as car sales to developing countries continue to increase. However, seamless pipe market players in Germany are cautious in their outlook for next year because of the increased economic uncertainty, and so the downward trend in seamless pipe prices may continue into the first quarter of 2012.
 
The base domestic price of 2"-6" seamless pipes made to ASTM or EN from German producers  are at about €1,050/mt delivered.
 
Export quotations of German high quality 14"-16" seamless pipes as per ASTM A106 grade B are in the range of €1,370-1,410/mt FOB, while 18"-24" pipes are at €2,320-2,360/mt FOB.
 
Export offers of 3/4" seamless pipes made to ASTM A106 of steel grade B are being given by German producers to the external markets at around €1,350-1,450/mt ex-works, while offers of the same pipes from top-tier producers may reach €1,500-1,550/mt ex-works.
 
Romanian 3"-10" seamless pipes made to ASTM are being offered to the German market at about €1,100-1,150/mt CPT.
 
Prices for Italian seamless pipes 6"-8" grade B made to ASTM A106 are at about €1,350-1,400/mt CPT, while 16" pipes are at €1,420-1,435/mt CPT.