Poor demand and low feedstock costs impact Polish welded pipe market

Activity in the Polish welded pipe market has remained sluggish amid ongoing low demand from consuming industries. Polish welded pipe producers have reduced their domestic prices by €10-15/mt ($4-8/mt) over the past month amid poor demand and lower feedstock costs. During the given period, quotations of Italian material for the Polish market have decreased by €20-30/mt ($10-25/mt), while Bulgarian suppliers have decreased their offers for Polish customers by €15-20/mt ($7-13/mt). Market insiders think welded pipe suppliers in Poland are unlikely to implement any price increase in the short term given the present market situation.
 
Current domestic quotations of locally produced 3/8"-6" water and gas ERW pipes of 2.6-4.5 mm wall thickness made to EN 10255 are at €630-655/mt ($874-909/mt) delivered, exclusive of 23 percent VAT. Offers of square and rectangular hollow sections with 2-4 mm wall thickness made from S235 JRH grade hot rolled coil (HRC) according to EN 10219 are in the range of €510-530/mt ($708-736/mt) ex-works. ERW galvanized pipes made to EN 10240 are quoted for local customers at €830-840/mt ($1,152-1,166/mt) delivered.
 
Quotations of Italian black welded pipes of 2"-6" size with wall thickness of 2.0-4.0 mm as per EN 10219 made from S235JR grade HRC to the Polish market are at levels of €600-640/mt ($833-888/mt) CPT on actual weight basis.
 
Offers of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 to Polish customers are standing at an average of €545-570/mt ($756-791/mt) CPT on theoretical weight basis.
 
€1 = $1.39