Both prices and demand for welded tube are suffering throughout Europe. However, some re-rollers are gradually reducing discounts and are attempting to consolidate a discount cut of 1 point per week. One point of discount is equivalent to €10/tonne ($11.2/t), distributors and re-rollers tell Kallanish.

Market uncertainty caused by weakening HRC prices in Europe is also adversely affecting tube prices. Demand for tube is considered to be “... low and bad” by distributors in France and Italy. The current level of discounts in Italy is 40-41 points depending on seller, buyer and order size, and 40 on average in France and Germany. Some Italian re-rollers who sell in France and Germany are now positioning their sales based on 38-39 points in Europe.

Despite the current uncertainty however, re-rollers are relatively optimistic about the coming weeks. This is because the large Ukrainian and Turkish tube exporters into Europe are very close to reaching their import quotas especially for hollow sections. In May therefore, European countries should see less imports and more sales volumes from domestic tube makers, a re-roller comments.