Weak outlook and slack local demand for Bulgarian welded pipes

Welded pipe prices have continued to follow a sideways trend in Bulgaria amid relatively stable feedstock costs and moderate demand from foreign buyers. The domestic market continues to be dormant, while most orders received by Bulgarian welded pipe producers are from European consumers, especially from Germany, Poland and Hungary. For the coming short-term period, market insiders consider that it will be difficult for welded pipe prices in Bulgaria to register an increase since the prices of raw materials have remained stable and as the market outlook still remains weak.
 
Current offers of locally produced welded pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade hot rolled coil (HRC) according to EN 10219 are being given to the Bulgarian domestic market at around BGN 1,020-1,030/mt ($726-734/mt) ex-works, exclusive of 20 percent VAT and on theoretical weight basis.
 
Export quotations of Bulgarian ERW pipes and hollow sections of 2-5 mm wall thickness made from S235JR grade HRC as per EN 10219 are at levels of €470-495/mt ($653-688/mt) ex-works on theoretical weight basis for May production. In particular, export offers of Bulgarian pipes to Germany have remained at levels of €470-485/mt ($653-674/mt) ex-works, while offers to Poland and Hungary are at €480-495/mt ($667-688/mt) ex-works. Export quotations of Bulgarian water and gas pipes according to EN 10255 are at €480-510/mt ($667-709/mt) ex-works.
 
$1 = BGN 1.404
€1 = $1.39