Mills' price for welded pipes to be stable till 2012

摘要

Mills have left domestic prices for 57-108 mm pipes made to GOST 10704(05)unchanged for September shipment.Citing exchange rate fluctuations, Russian mills continue to raise strip prices topipe plants. Domestic prices for HR products have been steady for two month,but dollar-denominated quotations lost 2% in August and 5% ? in Septemberon weakening rouble. Limited supply will encourage suppliers for upward pricemoves. NLMK is expected to reduce flat product output by 20-25% in Octoberdue to scheduled repairs at mill 2000. Severstal plans a 10-day overhaul of itsmill 2000 in late October; HR product output will decrease in October andNovember. If the rouble keeps falling further the difference in the exchangerates may be reflected in HRC prices quoted to pipe plants as early as inOctober. However, this scenario is barely possible considering a gradual declinein demand, and the rouble devaluation will just prevent domestic HRCprices form slipping.