Export prices of seamless pipes from CIS producers have soared over the past month amid rising production costs and strong demand in foreign markets. Thus, prices for January production round billet from OEMK (Russia) to Ukrainian pipe makers have been at about $580/mt DAF, against $540/mt DAF in December. Offers of January production round billet from Ukraine's Dneprovsky (Dzerzhinsky) to Ukrainian mills have been given at $590-600/mt ex-works, $50-55/mt higher than in December. As a result, export prices for seamless pipes from Ukraine's Interpipe have increased by $90-120/mt over the past month. Export quotations of seamless pipes from Russia-based TMK Group have increased by $170-240/mt over the same period. Market sources report that round billet prices may continue to go up in February, which would push seamless pipe prices up further. This expectation is based also on strong optimism regarding support from foreign consumers as seamless pipe demand is improving gradually.
Export prices from Ukrainian mill Interpipe for February-March production hot-formed seamless pipes of 60.3-273.1 mm diameter, of 10, 20 steel grades, as per GOST 8731/8732, currently vary in the range of $1,100-1,150/mt FOB, while offers of seamless pipes of grade B as per ASTM A106 are at $1,150-1,200/mt FOB.
Russian seamless pipe maker TMK is cautious about giving export offers due to increasing raw material prices. Estimated export offers of March-April production seamless hot-formed pipes with diameter of 57-406.4 mm made to GOST by Russian producer TMK's subsidiary Volzhsky Pipe Plant are at $1,100-1,150/mt FOB, while offers of seamless pipes of grade B as per ASTM A106 are at $1,150-1,200/mt FOB. Seamless pipes with diameter 114-219 mm of 10, 20 steel grade made to GOST 8731/8732 from Tagmet are quoted in the range of $1,100-1,150/mt FOB. Seamless hot-formed pipes with diameter 73-168 mm, 10, 20 steel grade, made to GOST from Sinarsky PP are quoted at $1,150-1,200/mt FOB, while offers of seamless pipes of grade B as per ASTM A106 are at $1,250-1,300/mt FOB. Export offers of seamless hot-formed pipes with diameter 219-355 mm, made to GOST by Seversky PP are at $1,100-1,150/mt FOB.
Uraltrubostal has informed SteelOrbis that they are booked with orders until May. Currently, Uraltrubostal has stopped giving offers because of the higher prices for round billets and the necessity of recalculating export quotations of seamless pipes.