June 2009 | Welded steel tube & pipe
Regional coil prices accelerate: Asia Market Analysis
As the construction season gets into full swing, pipe producers are looking for price stability.
Southeast Asian HR coil prices have now reached $500/tonne cif and even higher in most markets – an increase of up to $100/tonne over the last six weeks. The end of destocking by consumers and distributors and an improved economic performance combined to improve demand, while supply remains constricted. This has pushed up orders and lead times and consequently prices. However, as supply gains are made, we may see coil prices peak in the summer, as underlying demand remains well below capacity.
While there remains availability of discounted tubular products, most regional tubular mills are looking to pass on the rise in raw material costs and are quoting higher prices. Southeast Asian hollow sections are now around $750/tonne fob, with some mills looking for more, but there are some lingering offers at around $700/tonne fob – primarily for stock material. With margins over HR coil around $200/tonne, the...
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