October 2011 | Welded steel tube & pipe
Italian producers struggle: Europe, Middle East and Africa Market Analysis
The low prices in southern Europe means that Turkish material is not viable.
Hit by a combination of seasonal slowing of the construction sector and uncertainty in manufacturing markets, Italian distributors have pulled back from purchasing. They also await a bottoming of the HR coil price, which is now at or below €500/tonne ex-works. Tubular mills initially had some success in selling to German and French customers, but they too now have sufficient stocks and export orders to non-EU destinations are slow even as the currency stays weak.
Italian S235 ERW welded pipe is now as low as €580/tonne ex-works, which is very close to the production cost and is therefore unlikely to fall further unless there is another decline in HR coil pricing. Mills tend to ask for €600-610/tonne, but are willing to deal. Nevertheless, production volumes may fall in the short term as lead times are short and there is limited capacity to accumulate inventory at the mills. ...
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