Seamless pipe demand remains scarce in Spain

Thursday, 21 March 2013 17:54:50 (GMT+3)   |  

The Spanish seamless pipe market has not yet indicated any signs of recovery. Demand from local end-users and traders has been feeble over the past month due to slackness in consuming industries amid the negative financial and economic environment which prevails in the country. However, domestic and export quotations of Spanish seamless pipes have mostly remained stable over the past month in euro terms, whereas on dollar basis prices have lost around $40-45/mt due to the weakness of the euro. Prices offered from China have decreased by a maximum of €40/mt ($86/mt) over the past month, while quotations of Ukrainian material have increased by €20-30/mt ($6/mt) mainly due to currency fluctuations. Import offers of Italian seamless pipes have remained unchanged over the period under review in euro terms, but have decreased by $45-46/mt in dollar terms. Market players think conditions in the Spanish market for seamless pipes will not change drastically in the near future. Seamless pipe suppliers are not going to lower prices due to their high production costs, while it is also difficult for them to raise their prices given the current slackness of demand.

Current Spanish domestic prices for 2"-4" hot-formed seamless pipes, grade B made to ASTM A106, are at around €1,000-1,020/mt ($1,290-1,316/mt) ex-works, while 6"-10" pipes are at €1,050-1,100/mt ($1,355-1,420/mt) ex-works.

Current export prices of Spanish seamless pipes, 2"-4" grade B according to ASTM A106, are varying at around €1,030-1,050/mt ($1,330-1,355/mt) FOB, while 6"-10" seamless pipes are at €1,080-1,130/mt ($1,394-1,458/mt) FOB.

Prices for Chinese seamless pipes, 2"-6" grade B made to ASTM A106/API 5L, are at about €780-820/mt ($1,007-1,058/mt) CFR Spain, exclusive of antidumping duties (in the range of 17.7-39.2 percent depending on the producer).

Offers of April production Ukrainian seamless pipes with 42-168 mm diameter of 10, 20 steel grade made to GOST 8731/8732 are being given to Spain at €800-850/mt ($1,033-1,097/mt) CPT. Prices are shown exclusive of 12.3-13.8 percent antidumping duty.

Quotations of Italian seamless pipes, 8"-10" grade B made to ASTM A106, to Spain are at €1,130-1,180/mt ($1,458-1,523/mt) CPT.

€1 = $1.29


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