Demand for Czech production seamless pipes remains weak in the local and foreign markets. Due to exchange rate fluctuations, seamless pipe producers in the Czech Republic have been forced to cut their export and domestic prices in order to stay competitive against cheaper import offers quoted in US dollars. Thus, export quotations of Czech origin seamless pipes have decreased by €50-60/mt over the past month, while domestic prices have moved down by €30-60/mt over the same period. Import offers of Romanian seamless pipes have declined by €10-30/mt. Czech seamless pipe producers hope to keep their prices stable in euro terms till the end of the year. The Czech central bank has cut its 2011 growth outlook for the economy to 1.2 percent from 1.8 percent, saying growth will be stunted by government austerity measures implemented to slash the budget deficit. Nevertheless, market players hope for more favorable market conditions in 2011, especially as recovery in demand in western Europe picks up.
Domestic prices for locally produced 3"-10" seamless pipes of steel grade B made to ASTM A106 are at about €860-900/mt ex-works for November production, exclusive of 20 percent VAT.
Export prices for November production 2"-10" seamless pipes of steel grade B made to ASTM A106/API 5L from ArcelorMittal Ostrava are at €880-900/mt FCA, offers of 1"-1 ½" seamless pipes are at €930-950/mt FCA, while ½"-3/4" pipes are at €1,020-1,050/mt FCA.
Import offers of seamless pipes from Romania 3"-10" of grade B made to ASTM A106 are being given to the local market of the Czech Republic at €840-890/mt CPT.