MB STEEL TUBE & PIPE: Producers face added cost pressure as steel prices keep rising

Costs for materials used to make steel tubes and pipes are likely to keep increasing, putting more pressure on margins at tubemaking mills, producer sources said at Metal Bulletin’s 11th Annual Tube & Pipe Forum in Abu Dhabi on Tuesday September 12.

Prices for materials such as the steel billet, plates and hot rolled coil (HRC) which are used to make various product types have been rising in recent months, partly as a result of very strong Chinese domestic markets, which have squeezed the margins that can be achieved by tubemakers.
“The expectation is that the prices will increase in the next five years,” Zeyad Al Barrak, ceo of Saudi Arabian pipemaker Jesco, said on Tuesday.
Amid the high costs, Jesco will “maintain […] a reasonable growth rate – not so big but at least steady”, he said.

“We are not...

Published

Lee Allen

September 12, 2017

18:52 GMT

Abu Dhabi