Italian welded pipe market still sluggish

The Italian welded pipe market has seen weak business activity in the past month. Due to the current snowy weather, some building projects have been suspended in the country. However, Italian welded pipe makers have increased domestic and export prices by €10-20/mt over the past month citing the necessity to cover their constantly rising production costs. Turkish suppliers have reduced their offers by €20-30/mt due to the impact of the appreciating euro, while import offers of Bulgarian welded pipes have increased by €40-50/mt over the past month. Welded pipe prices in Italy will likely remain stable in the near future as demand will be low in the current unfavorable situation in the market, while in March quotations may move up owing to the seasonal recovery in demand.

Current local prices for Italian welded pipes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from base steel grade S235JR HR coils are at about €620-680/mt ex-works. Prices are shown on actual weight basis and excluding 21 percent VAT. Domestic prices for standard-size precision welded tubes E235 grade as per EN 10305-3 are at about €750-760/mt ex-works.

Export quotations of Italian 2"-6" welded pipes as per EN 10219 are at about €650-700/mt FOB (transportation by sea) or €620-680/mt ex-works (transportation overland). In particular, offer prices for Spain are in the range of €650-710/mt CPT.

Offers from Turkish suppliers of industrial welded pipes with 2-4 mm wall thickness made from HR coils are being given at an average of €570-620/mt CFR to Italy and at €580-630/mt CFR to Spain.

Offers of Bulgarian welded pipes to the Spanish market are standing at an average of €650-670/mt CPT on theoretical weight basis.