In June, producers' quotations for welded and seamless pipes havestayed largely unchanged.In the next three months, changes in Russian production cost will be among themajor factors affecting welded pipe prices. Despite the rally of the globalmarket for flat products, strip prices will shortly be adjusted unevenly to Russianand Ukrainian producers of welded pipes. In Russia, quotations for the Julyoutput of the feedstock will be the same as before, but in August-Septemberthey will add 2-3% per month. Russian plants will revise Q3 prices to theKazakh market based on changes in production cost. Ukrainian producers'interest in supplies to Kazakhstan will supposedly wane due to the currentpeculiarities of the home market. As a result, prices may rise more substantially,producers initially overpricing their products. To remain competitive, localproducers will have to retreat from the price increases planned for July,in line with the trend in prices for Russian pipes. They will probably be unableto implement the increases until the middle of Q3.
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