A surge in round billet prices, which has been seen in the CIS market from the beginning of this year, has pushed up CIS seamless pipe quotations. Export quotations of round billets from the CIS are in the range of $580-600/mt FOB Black Sea port, up by $130/mt from the levels for March production material ($450-470/mt FOB).
Ukrainian producers of seamless pipes have increased their offer prices for foreign customers by $50-120/mt over the past month. At the same time Russian seamless pipe manufacturers have lifted their prices by $100-115/mt over the same period. Ukrainian and Russian seamless pipe manufacturers expect raw material prices to increase in line with the rise in the global markets. Thus, export quotations of seamless pipes will be determined by feedstock costs during the next few months. Meanwhile, seamless pipe demand from foreign customers is expected to recover slowly. In addition, demand from the regions with strong oil and gas sectors will remain firm thanks to the high global prices for oil.
Export prices from Ukrainian mill Interpipe for April-May production hot-formed seamless pipes of 42-377 mm diameter, of 10, 20 steel grades, as per GOST 8731/8732, currently vary in the range of $1,020-1,050/mt FOB. 2"-14" seamless pipes of grade B, as per ASTM A106/API 5L, are offered by the same producer at an average of $1,050-1,100/mt FOB.
Export prices for April-May production seamless hot-formed pipes with diameter up to 219 mm of 10, 20 steel grade made to GOST 8731/8732 from Russian producer TMK's subsidiary Volzhsky Pipe Plant are at about $885-900/mt FOB. SteelOrbis has learned of export offers of seamless pipes with 73 mm outside diameter and 14 mm wall thickness of steel grade 52 made to GOST from TMK at about $985/mt FOB.
Seamless hot-formed pipes with 73-168 mm diameter of 10, 20 steel grade made to GOST from Sinarsky PP are quoted at $1,000/mt FOB.
Export offers of Russian seamless hot-formed pipes of 33.7-219.1 mm diameter, made to GOST, ex-Uraltrubostal (Pervouralsky Novotrubny Works) are at about $1,000/mt FOB, for May output. However, Uraltrubostal is very cautious about giving export offers for May production as the situation with round billet prices is not clear yet.