Pipe and Tube Market Review

In the past few months, a few new developments have made their mark on the steel market.

First, decisions made in Brussels could lead to an upward price pressure for hot rolled coils in the EU. Just before the current system of import quota (Safeguards) would end, the EU announced to prolong this system with another 2 years, until July 2026. This was kind of expected. Quite unexpected, however, was the decision to restrict the import quota from so called "third countries" to 15% of a country's total imports. This concerns countries as Vietnam, Taiwan, Japan and Egypt, from which rather large volumes were imported into the EU recently. Imports above these quota will become 25% more expensive. For tonnages exceeding these new quota but already present in EU harbors waiting to be customs cleared, this means a substantial price increase.

This new system might give EU mills some room to increase their HRC prices and steer away from the current unsustainable, low price levels.

Another factor is the investigation against possible dumping of seamless carbon steel tubes by Chinese mills, announced by the EU on May 17. This is still ongoing; a decision must be made within 14 months. Possible regulations and import tariffs can be implemented retroactively, which makes importing seamless tubes from China a risky business. This leads to some turmoil on the market.

For seamless tubes, not only decisions or investigations from Brussels influence the actual market. The fact that mills have closed (like Vallourec Germany earlier this year), will soon close (Huta Andrzej, part of Alchemia Group) or want to sell certain production locations (Ostrava, part of Liberty Group) also play a role and might lead to challenges when markets pick up again.

Price development of hot-rolled coil

Price development of scrap

CBAM stands for Carbon Border Adjustment Mechanism. It is an EU regulation for the correction at its borders of CO2 emissions released during the production of six product categories: iron and steel, cement, fertilizers, aluminium, electricity and hydrogen. CBAM also applies, therefore, to our assortment of steel tubes, fittings and flanges and bar steel.

The CBAM regulation will officially go into effect on 1 January 2026. As of October 2023, a transition period started, in which everyone can prepare for the rules. During this transition period, importers of steel products must report quarterly on the CO2 which is emitted during the production of the imported steel products. 

Would you like to know what the CBAM regulations mean for you? Click here.

After the stabilization of transport tariffs in April and May, prices for sea container transport have gone up considerably in June. The turmoil in the Red Sea area goes on, and harbors in Asia such as in China and Singapore are confronted with congestion, leading to waiting times up to 7 days.

Regarding welded tubes, prices are expected to have hit rock bottom. Demand of the European industry remains low, so prices remain stable. An upward price pressure on hot rolled coil - and with it on welded tubes - could emerge from the above mentioned Safeguard decisions of the EU.

For seamless tubes the situation is comparable. Due to an unchanged demand level, prices remain stable too. For these products, the afore mentioned anti-dumping investigation by the EU for tubes from China could lead to higher prices. This will only become clear after the EU has finished the investigation and establishes measures.

For fittings and flanges, price levels are stable as well. Prices of pre-materials such as billets, steel plates and tubes) barely change, so neither do the prices for fittings and flanges. On a short term, we don't expect much to change.

Delivery times of European mills are good. The delivery times for imported material from Asia remain long and risky, due to the ongoing problems in the Red Sea area.

During the coming summer months, Van Leeuwen is open for business. We remain fully operational to be at your service. Are you looking for advice, do you need support or do you want to place an order? Our team is here to help you.

We know that the summer months can be a busy period for many companies. By staying open, we ensure the undisturbed continuation of your activities. Our stocks are filled. So please don't hesitate to contact us during the coming summer period!

P. van Leeuwen Jr’s Buizenhandel B.V.

Zwijndrecht, Netherlands

T +31-78-6252525

E sales@vanleeuwen.nl

W www.vanleeuwenbuizen.nl