Steel pipe prices in Europe fell in early April as weak demand and energy sector uncertainty limited producers’ ability to raise prices. Despite rising costs for raw materials, manufacturers failed to pass these increases on to customers.
Welded Pipe Export Prices Drop in Turkey
Turkish exporters lowered quotations for S235 welded steel pipes by $5 per tonne, reaching $592/t FOB in early April, according to Kallanish. European buyers have become hesitant, requesting discounts rather than accepting existing prices.
This situation reflects weak demand, as buyers avoid locking in deals without incentives. Local pipe producers in Turkey also faced cost pressure, with hot-rolled coil (HRC) suppliers raising offers by $20 per tonne for June shipments.
Yet, pipe mills could not reflect those higher input prices in their sale prices. Consequently, profit margins remained under pressure for welded pipe manufacturers.
OCTG Prices Hold Steady in North America as Oil Outlook Worsens
The OCTG (Oil Country Tubular Goods) market in North America remained flat. The price of P110-grade pipe stayed unchanged at $2,350/mt FOB during the first ten days of April. Sellers reported that oil and gas companies only bought pipe in urgent cases.
This cautious approach is driven by uncertainty in the global energy market. On April 3, OPEC agreed to increase oil production by 135,000 barrels per day, starting in May. The expected surplus in supply triggered a bearish outlook on oil.
Consequently, companies have reduced exploration and drilling activity. The number of active oil rigs in the United States fell by 30 units year-on-year, dropping to 590 rigs in early April. This has reduced demand for oilfield tubular products.
Additionally, Brent crude oil fell sharply on the London ICE exchange, dropping from $74.6/bbl on March 31 to $60.5/bbl by April 9. The fall in oil prices also pushed down natural gas prices across major European and North American trading hubs.
At SuperMetalPrice, we continue to monitor steel pipe pricing trends, HRC input costs, and energy market movements to provide timely insights for the global metals and alloys sector.
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