Prices for structural steel pipes fell to two-year lows by mid-April 2025.
One of the reasons is a strong surplus of capacities and their downtime, especially for large companies, against the background of a general drop in steel prices and demand for it in the domestic market.
Illustrative photo: omk.ru
By mid-April, the cost of structural steel pipes (profile, water and gas pipelines, special and general purpose pipes) had dropped to lows in almost two years. So, according to the data of RA Rusmet on April 20, which is referenced by the Kommersant newspaper, the cost of a ton of water and gas pipelines was 64.6 thousand rubles, which is the minimum since the end of July 2023. The cost of a ton of electro-welded pipe was 63.3 thousand rubles, which was the lowest since March 2023.
One of the reasons is the strong surplus of capacities and their downtime, especially for large companies. Capacities exceed demand by more than three times, and all this, the interlocutors emphasize, in the context of stagnating domestic demand.
In 2024, the production of small and medium diameter structural pipes (MSDS) amounted to 5.8 million tons, which is 5% less than a year earlier, a source familiar with industry statistics told the publication. The main consumer of such pipes is the construction sector. The dynamics of consumption in the domestic market of such pipes in 2024-2023 was negative, the indicator itself was about 4 million tons. An increase of 8% was observed only in the segment of boiler pipes used in mechanical engineering. Other categories of pipes for mechanical engineering showed a decrease in demand: bearing pipes (a decrease of 28%), general-purpose pipes (minus 7%) and stainless pipes (minus 6%). Pipes used in construction also showed a decline: in the segment of general—purpose pipes it amounted to 7%, in the segment of profile pipes - 5%. And considering that the main share of MSD structural pipes is occupied by pipes for construction, a decrease of 5-7% actually has a larger effect, the publication's interlocutors in the industry emphasize.
In the first quarter of 2025, Russia produced 1.2 million tons of structural MSD pipes, which is 18% less than a year earlier. According to Rusmet, the volume of consumption of structural pipes in the first quarter showed a similar trend — minus 14%. Boris Krasnozhenov, Head of the Securities Market Analytics Department at Alfa Bank, expects demand in the segment to decrease to the level of 1.9-2 million tons during the year. "The dynamics of the recession may change if the key rate improves. If we assume that the key rate returns in 2023, then the decline rate for the year will not exceed 7%, and growth will begin in 2026," says the director of Ruslom.com" Victor Kovshevny.
Illustrative photo: market.severstal.com
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