Pipe and Tube Market Review
June 2021
On a regular basis we provide relevant information about developments in the steel market and the effects they will have on prices and availability of pipe and tube material.
Steel Market Developments June 2021
The extreme developments in the steel market regarding prices and availability are continuing. As a matter of fact, it seems to become more and more likely that we will have coil shortage for in the third quarter. Several factors are at the base of this expected scenario.
Most producers of hot rolled coil still cannot or will not increase their capacity. During the summer, the supply of coils could be even lower because mills are closing for maintenance. The consequent price increasing effect is evident.
In China, the export tax rebate has been killed as per May 1st . This immediately led to price increases from Chinese mills and a shift of demand for steel to Europe, putting even more pressure on the European mills.
These developments contribute to steel prices rising to extreme high levels. This leads to deals being closed under high pressure because the validity of quotations is shorter than ever. There are no signs yet that this situation will change on short notice.
Prices of pipes, fittings and flanges
The increasing price levels of hot rolled coils have an immediate effect on the prices for welded tubes and hollow sections. In the last few months, one price increase followed after another. Right now, the price level of welded tubes is even higher than that of seamless tubes An end to this development is not yet to be expected.
The upward price trend for seamless tubes accelerated over the last few weeks as well, enhanced by rising scrap prices. Mills for seamless tubes are fully booked for the coming months. The strong rumor that China will implement an export surcharge could enhance this acceleration even more.
Prices of fittings and flanges have recently gone up as well, following the increased prices of pre-materials. Within this product group, prices of flanges from China have increased the most, due to the above mentioned abolition of the export tax rebate in that country.
Availability and delivery times
All developments mentioned before obviously have their effect on delivery times and availability of tube products. Delivery times become longer as there still is no balance between supply and demand. We take this into account as much as possible when ordering pipe and tube material for our stock. Especially in times like these, our stock is of vital importance as a buffer to ensure on time delivery to our customers as much as possible.
P. van Leeuwen Jr’s Buizenhandel B.V.
Zwijndrecht, The Netherlands
T +31-78-6252525