December 2011 | Welded steel tube & pipe
Welded prices to stay in line with increasing raw material prices next quarter: Europe, Middle East and Africa Market Analysis
EU summit decisions in the coming few weeks regarding policies to mitigate the eurozone sovereign-debt crisis will set the tone in the following year for the manufacturing, construction, automotive and mechanical sectors, directly affecting welded pipe purchasing and production activity in 2012.
Concerns over the reactions to debt issues are impeding demand and price growth in the European welded pipe market. Pricing is stable to down this month due to poor demand and falling costs being passed on to consumers. Buying activity in December and January has been relatively slow, as customers await news from the EU Summit to see if particular sectors of Europe’s economy will be subject to budget changes. Although market sentiment is perceived as being sluggish, seasonally adjusted EA 17 GDP increased .15% between Q2 and Q3 this year; however, between October-November 2011, total European crude steel production declined 6.7% m-o-m. We anticipate that crude steel volumes and GDP growth this quarter will be similar to levels seen in Q3. Meanwhile, prices for HR coil in Europe have reached a 23-month low, suggesting that demand over the last few months has been weak. Coupled with sluggish market activity,...
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