The downward trend in the flat steel segment along with slack demand for welded pipes from both local and foreign buyers have forced Bulgarian pipe makers to start making reductions.
Over the past two weeks, export quotations for Bulgarian welded pipes have declined by €10-55/mt, while domestic prices have moved down by €5-20/mt. Demand for welded pipes in the Bulgarian market remains too slow amid weak business activity in the construction sector. Furthermore, inflation, coupled with wage freezes, also hinders demand for products in the domestic market. Foreign buyers have also become very cautious about making new purchases due to the current downtrend and prefer to wait for a clearer situation in the market. However, Bulgarian pipe makers may continue to reduce their prices if offers of feedstock material continue to drop down.
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 €615-620/mt ex-works, exclusive of 20 percent VAT and on theoretical weight basis. Offers of similar pipes with wall thickness of 1.5 mm made from HRC as per EN 10219 are at €665-680/mt ex-works. Bulgarian domestic quotations of water and gas ERW pipes made to EN 10255 are at €635-640/mt ex-works.
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 the level of €625-635/mt ex-works on a theoretical weight basis for April production. Offers of similar Bulgarian pipes with wall thickness of 1.5 mm made from HRC as per EN10219 are at around €700-710/mt ex-works. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €645-655/mt ex-works. ERW galvanized pipes with 2-3 mm wall thickness made to DIN 2440/2444 are quoted in the foreign markets at on average €830-840/mt ex-works.