Italian welded pipes rise due to higher raw material costs despite weak demand

Friday, 03 September 2010 10:35:31 (GMT+3)   |  
       

Italian welded pipe producers are still struggling with their weak domestic market as well as with overcapacity. A lack of new investments in real estate and in the housing industry is observed in both Italy and Spain, causing the local welded pipe markets to suffer. On the other hand, scrap prices, which have been increasing steadily for about one month now, leave pipe producers with no other option than to lift their prices. Thus, domestic and export quotations of Italian welded pipes have increased by €30-40/mt over the past month. Indian suppliers have raised their offers for Italy by €10-40/mt, while prices of Bulgarian welded pipes have increased by €40-60/mt - all over the past month. Market participants expect to see further moderate increases in prices as the market becomes active again in September and as raw material and feedstock costs continue to rise.

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 €600-650/mt ex-works (here and below on actual weight basis and excluding 20 percent VAT). Pickled pipes of sizes up to 6" from Italian producers are being offered to the domestic market at around €680-700/mt ex-works, with galvanized pipes at about €790-810/mt ex-works. Domestic prices for standard-size precision welded tubes E235 grade as per EN 10305-3 are at about €750-780/mt ex-works.

Export quotations of Italian 2"-6" welded pipes as per EN 10219 are at about €630-680/mt FOB (transportation by sea) or €600-650/mt ex-works (transportation overland). In particular, offer prices for Spain are in ranges of €660-710/mt C&F or €630-680/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 €560-580/mt C&F to Italy and €565-590/mt C&F to Spain. The prices of Turkish welded pipes with 1.5 mm wall thickness made from CR coils are at about €635-660/mt C&F to the Italian market and at €640-665/mt C&F to the Spanish market.

Quotations of Indian black welded pipes of 1"-6" size as per BS 1387 or DIN 2440/2444 or EN 10255 to the Italian market are at the level of €730-750/mt C&F. Offers of Bulgarian welded pipes to the Spanish market are standing at an average of €705-730/mt CPT.


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