Purchases in local European welded pipe market remains below expectations

Tuesday, 11 September 2018 16:37:09 (GMT+3)   |   Istanbul
       

November bookings in the European welded pipe market have started, though demand is not as strong as expected. As hot rolled coil prices in Europe have remained flat and welded pipe purchases have slowed down, welded pipe prices in the European market have remained unchanged compared to a week ago.

Accordingly, a Bulgarian steel producer’s offers for ERW pipes as per EN 10219 are at €610-650/metre ($696-754/metre) CPT. The Bulgarian welded pipe producer’s quotations to Hungary and Poland are at €620-630/metre ($719-731/metre) CPT, with other offers to the Czech Republic and Austria being at €630-640/metre ($731-742/metre) CPT, while its offers to Germany and Romania are at €640-650/metre ($742-754/metre) CPT and €610-620/metre ($696-719/metre) CPT respectively.

Market sources are worried that the quota-monitoring system used to check the remaining quotas in EU’s out-of-quota tariff on steel imports might be misleading and the slowdown in steel imports might be the result of the system only registering the volumes which have arrived, not the volumes which are booked. As a result, market sources believe that the import quota will likely be filled as the delivery of shipments with September and October delivery dates and with high-volumes shipments. Accordingly, European buyers are unwilling to take a risk by booking imports with delivery dates after October and they are likely to turn to local suppliers. According to latest data, 16.6 percent of the welded pipe quota and 20.6 percent of the hollow section quota have been used up.

€1 = $1.16


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