Prices for welded pipes will rise due to a shortage in Europe

Disruptions in the production of hot rolled coils in Europe affect the supply of derived coils and slow down the production of pipes. Italian distributors and re-rollers are reporting a problem with the supply of welded pipe, for which certain grades are difficult to find, and even commercial grades are beginning to suffer from slow deliveries.

ArcelorMittal told customers ten days ago that delivery delays across Europe were expected due to recent fires that affected one blast furnace in northern Spain and another in northern France. Some customers in Italy say their roll deliveries are delayed by as much as two months until July and August.

Welded pipe prices continue to lag behind HRC prices in Europe. As sources expect further price increases in Europe and difficulties in purchasing hot rolled coils worsen, pipe manufacturers are pushing up prices. Current discounts in Italy remain unchanged at 27 points, but from next week they will decrease to 25 points, gradually decreasing to 20-21 points in May.

Major rollers continue to purchase material of Asian origin, which will be delivered in July. While ArcelorMittal confirmed that deliveries of hot-rolled products are being delayed, production by major Italian producer Acciaierie d'Italia has been severely reduced, leaving Arvedi as the only reliable supplier for buyers in the country. At the same time, distributors report a difficult market situation and difficulties with price increases due to a real slowdown in consumption compared to last year.

It is difficult to find structural pipes and material of lesser thickness. Buyers are starting to look for longer deliveries of some commercial grades. Despite the weaker economy and consumption, distributors are expected to raise prices for pipes and other reel derivatives.