September 2011 | Welded steel tube & pipe
Weak coil undermines attempts to boost tubular pricing: Europe, Middle East and Africa Market Analysis
The expected return of buyers to re-stock for fourth quarter requirements was upset by expectations of weaker final demand and concerns on financial stability.
A combination of poor macro-economic data and rising concerns on political stability derailed attempts by EU steel mills to raise coil prices in early September. The expected return of distributors and consumers to re-stock for fourth quarter requirements was upset by expectations of weaker final demand and concerns on financial stability. Under the circumstances, no-one has sought to build inventory in expectations of better future sales.As we forecast last month, without a clear boost to underlying coil prices any attempt to push up welded tubular prices would be ignored. Spanish tubular mills that had been preparing customers for increases in September have seen pushback as they quote €700-720/tonne ex-works in Spain for S235 welded. In fact, they continue to stress that they are aiming for as much as €720-730/tonne ex-works at some point over the fourth quarter. In Italy, Marcegaglia announced a €30/tonne increase in all coil and tubular prices...
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