Exclusive World prices for steel pipes declined in April

Demand for tubular products falls due to reduced investment in oil production

Offers from OCTG producers on the North American market fell by $80/t to $2270/t FOB from April 11-25, according to Kallanish. Traders attribute this to a significant reduction in capital expenditures by buyers, oil and gas companies.

It is worth noting that European Brent crude oil quotations fell by $7.17/barrel to $60.79/barrel from April 16 to May 1. The fall was caused by the decision of 8 countries that are members of the OPEC+ cartel to increase production in April-May by 411 thousand barrels per day instead of the previously planned 138 thousand barrels.

The total additional production will amount to 2.2 million barrels per day. This is a record figure since 2020.

The increase in oil supply on the global market contributes to a further decline in prices. In turn, this reduces production margins. Thus, investments in its expansion are becoming unprofitable for Western companies.

Turkish quotations for welded steel pipes in the second half of April remained at $592/t FOB. Overall, the month’s decline was $5/t.

Despite weak demand from European buyers, Turkish pipe producers were unable to offer lower prices, as the cost of hot-rolled coils in the domestic market remains high.

Instead, demand from Turkish pipe mills is characterized by stability. The producers of hot-rolled coils are accepting their current orders subject to delivery in July. The margins of pipe production remain low, given the factory quotations for hot-rolled coils at $580-590/tonne EXW in Turkey.

American pipe consumers are having problems due to the introduction of additional tariffs of 25% on imports of all steel products to the United States.

As reported, American pipe consumers are facing problems due to the imposition of additional 25% tariffs on imports of all steel products to the United States. At the same time, these duties jeopardize production at the Ukrainian pipe plant Interpipe Niko Tube in Nikopol, which is officially recognized as a war zone.