Seamless pipe demand remains subdued in Spain

Thursday, 22 November 2012 12:02:02 (GMT+3)   |  

The Spanish seamless pipe market has seen no positive changes over the past month. Demand for standard seamless pipes in the Spanish domestic market remains subdued due to unfavorable conditions in consuming industries. However, Spanish suppliers report a positive business performance in the oil and gas sector and also in the power generation field, particularly in emerging regions.

Spanish suppliers have kept their quotations mostly stable during the past month. Meanwhile, prices offered from China have increased by a maximum of €40/mt ($51/mt) over the past month, while quotations of Ukrainian and Italian material have remained unchanged.

Market participants see no optimistic market scenarios for the coming period amid rising uncertainty due to the weakness of the European economies, but suppliers may nevertheless attempt upward adjustments amid rising scrap prices in Europe and a possible buying revival before the traditional December lull in Europe.

Current Spanish domestic prices for 2"-4" hot-formed seamless pipes, grade B made to ASTM A106, are at around €1,030-1,050/mt ($1,318-1,344/mt) ex-works, while 6"-10" pipes are at €1,100-1,150/mt ($1,408-1,472/mt) ex-works.

Current export prices of Spanish seamless pipes, 2"-4" grade B according to ASTM A106, are varying at around €1,060-1,080/mt ($1,357-1,382/mt) FOB, while 6"-10" seamless pipes are at €1,135-1,185/mt ($1,453-1,517/mt) FOB.

Prices for Chinese seamless pipes, 2"-6" grade B made to ASTM A106/API 5L, are at about €750-800/mt ($960-1,024/mt) CFR Spain from small producers, while the same pipes are offered by bigger manufacturers at around €840-890/mt ($1,075-1,139/mt) CFR Spain, exclusive of antidumping duties (in the range of 17.7-39.2 percent depending on the producer).

Offers of December 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 €865-905/mt ($1,107-1,158/mt) CPT. Prices are shown exclusive of 13.8 percent antidumping duty.

Quotations of Italian seamless pipes, 8"-10" grade B made to ASTM A106, to Spain are at €1,180-1,230/mt ($1,510-1,574/mt) CPT.

€1 = $1.28


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