Poor demand from consuming sectors in local Bulgarian welded pipe market

Activity in the local Bulgarian welded pipe market has remained extremely quiet. Local welded pipe prices in the national currency have been stable over the past two weeks, while prices on US dollar basis have declined by $11/mt amid currency fluctuations. Although stocks are rather low, most local traders are avoiding purchases due to poor demand from consuming sectors. Demand from foreign buyers remains quite satisfactory, leading to a slight increase of €5-10/mt ($7-14/mt) in export quotations. It is thought that prices for Bulgaria's welded pipe exports may continue to remain firm, though the usual summer lull may cause some slowdown in the market.
 
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade hot rolled coil (HRC) according to EN 10219 are being given to the Bulgarian domestic market at around BGN 1,020-1,030/mt ($714-720/mt) ex-works, exclusive of 20 percent VAT and on theoretical weight basis.
 
Export quotations of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are at levels of €475-505/mt ($651-692/mt) ex-works on theoretical weight basis for May production. In particular, export offers of Bulgarian pipes to Germany have remained at levels of €475-495/mt ($651-678/mt) ex-works, while offers to Poland and Hungary are at €485-505/mt ($664-692/mt) ex-works. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €490-520/mt ($671-712/mt) ex-works.
 
$1 = BGN 1.43
€1 = $1.37