Romanian seamless pipe market under pressure from weak demand

Wednesday, 03 November 2010 13:30:19 (GMT+3)   |  
       

Buyer activity has slowed down in the Romanian seamless pipe market due to the seasonal lull. Domestic offers of locally produced seamless pipes have declined by €20-50/mt over the past month. During the period in question, ArcelorMittal has maintained its export seamless pipe prices at the same level in dollar terms, but due to currency fluctuations its prices in euro terms have decreased by €20-30/mt. Real demand for Romanian seamless pipes has not improved to the extent which was expected. Romanian seamless pipe suppliers complain of low profitability as capacity utilization is low, and it is difficult for them to increase prices in line with the higher costs. However, it is unlikely that Romanian seamless pipe suppliers will be able to achieve any significant price increase before the end of the year. Romania needs to encourage investments. Domestic industry does not show any clear signs of revival and the country's economy is not expected to overcome the current crisis in 2011.

Current local prices for November production seamless pipes of 1"-4" size of grade P235 as per EN 10216 are at about €850-1,000/mt ex-works depending on wall thickness, while ½"-3/4" pipes are at €1,050-1,080/mt ex-works. Prices are given excluding 24 percent VAT.

Export offers of 3"-10" seamless pipes of grade B made to ASTM A106 are being given by ArcelorMittal Roman to the external markets at around €820/mt ($1,150/mt) FCA, while 12" pipes are at €845/mt ($1,185/mt) FCA and 20" seamless pipes are quoted at €1,210/mt ($1,700/mt) FCA.


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