Following the price hikes by European hot rolled coil (HRC) and pipe producers, prices of welded pipe in the European domestic market, which had moved downwards for a long time, are not expected to decrease further. However, domestic welded pipe prices in Bulgaria have decreased to €545-550/mt ($610-616/mt) ex-works. Although weakness of demand from the automotive and machinery industries has increased the downward pressure on domestic welded pipe prices, the price hikes announced by European HRC producers are expected to provide support for welded pipe prices and to prevent them from declining further, as production costs will be higher. Before the European mills’ announcements of price hikes, prices in the local European welded pipe market were expected to decline by €5-10/mt in June. On the other hand, market players are unsure of whether the increases in HRC prices will gain acceptance.
€1 = $1.12