Minimal buying activity in local Italian welded pipe market

 The welded pipe market in Italy has been quiet with minimal buying activity over the past month. All attempts made by welded pipe suppliers to strengthen their positions have been fruitless as Italian buyers have rejected higher prices. Domestic and export prices for Italian welded pipes have declined by €10-30/mt ($14-41/mt) over the past month owing to softening demand and lack of support from flat steel prices. Import offers of welded pipes from Turkey have decreased by €10-20/mt ($14-27/mt) over the past month, while offers of Bulgarian materials have gone down by €10/mt ($14/mt) in the same period. Most players hold a negative outlook of the prospects for the market in the coming month, although welded pipe suppliers will likely try to keep their prices stable because of their low margins.
 
Current local prices for Italian ERW cold formed tubes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from base steel grade S235JR hot rolled coil (HRC) are at about €540-580/mt ($740-795/mt) delivered. Prices are shown on theoretical weight basis and excluding 21 percent VAT.
 
Export quotations of Italian 2"-6" welded pipes as per EN 10219 are at about €570-600/mt ($781-822/mt) FOB (transportation by sea) or €550-580/mt ($753-795/mt) ex-works (transportation overland). In particular, offer prices for Spain are in the range of €580-620/mt ($795-849/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 €490-510/mt ($671-699/mt) CFR to Italy and at €500-530/mt ($685-726/mt) CFR to Spain.
 
Offers of Bulgarian welded pipes to the Italian market are standing at an average of €560-600/mt ($767-822/mt) CPT on theoretical weight basis.
 
€1 = $1,37