Higher production costs to propel producers' prices

摘要

In June, producers have put up prices for 57-159 mm GOST 8731(32)HR seamless pipes by 3-5%.The development of global prices for semis is pushing production cost ofseamless pipes up in Ukraine. After the rise in FOB quotations for square billetsat the beginning of summer, semis will most probably get more expensive toUkrainian producers of HR seamless pipes in July. Despite a probable temporaryrecession in export markets, both local and foreign suppliers will raise quotationsfor July output of round billet by $25-40/t. In August-September, the pricegrowth may slow down, with monthly increases being $5-15/t. Increasingproduction cost will urge plants to lift domestic prices for HR seamless pipes.