Mills’ prices to go down in May-July

摘要

In April, the largest mills increased prices for 57-108 mm welded pipes(GOST 10704(05)) by 2-6%.Following quite active restocking in March, most pipe producers cutfeedstock purchases in April amid too slow recovery of constructionsteel demand and HRC price trend reversal anticipated in May. Thanksto availability of relatively cheap feedstock, welded pipe producers choseto maintain sales in April rather than increase prices in line with inputcosts. However, production cost will strongly affect domestic pipe pricesin the next few months. According to Metal Expert’s estimate, RussianHRC prices quoted to pipe plants will decrease by 6-8% in May, by 4-6%in June and by 2-4% in July. In the months to come, lowering feedstockcost will enable pipe mills to stay competitive amid excessive supplyand low paying capacity of most consuming industries.