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European tube discounts are finally lowering in transactions after re-rollers cut discounts for welded tube last week, buyers in the market tell Kallanish. Italy's Marcegaglia and other major re-rollers implemented a price increase of €10-20/t across their product range of welded tube in Europe.
Around 10 days ago distributors were very pessimistic in France, Italy, Germany and Benelux as to the feasibility of price increases. Over the last two weeks, this stagnation has given way to an increase in orders from final customers and some improvement in sales volumes, buyers say.
Welded tube discounts reached 43 and 44 points in some cases in most European countries in mid-July. Each point equates to €10/t ($11.1/t). Tube makers intend to achieve 40 points of discount this week. The level of discount however has fallen to 41-42 points so far, sources confirm.
Source: Kallanish
