European welded tube prices are sliding, in line with declining values of hot rolled coil. A similar demand slowdown has been noticed by re-rollers in all European countries despite demand from some end-use sectors remaining bullish, distributors and re-rollers tell Kallanish.
Prices for welded tube are forecast to continue sliding in the coming weeks amid a general steel price adjustment in Europe. This adjustment, however, may entice buyers to purchase at more reasonable price levels, supporting a new wave of demand.
While tube demand is stalling in some sectors, such as the automotive and mechanical engineering industry, other areas remain bullish. Demand from the oil and gas, and construction sectors is said to be strong. A re-roller says its order books are full for both segments, until October in the case of the energy sector.
The distribution sector has strongly reduced its purchases throughout Europe over the past weeks. Despite discounts in Europe increasing by 2-3 points last week on average, reaching 15-16 points, re-rollers report medium-to-low levels of stocks and constant demand from distributors, although for low volumes.
Natalia Capra France
