Factors Affecting Steel Pipe Prices and Their Relationship with Sheet

Many market traders follow pipe prices separately from sheet prices, even though the two are strongly interconnected. Welded pipe, which accounts for the largest share of the market, is made directly by rolling and welding steel sheet or strip; therefore, any change in sheet prices shows up in pipe prices as well, with a slight delay.

The Relationship Between Pipe and Sheet; Something You Should Not Forget

If coil and sheet prices increase on the Iran Mercantile Exchange, pipe manufacturers are also forced to raise the price of the final product to offset the cost of the raw material. For this reason, a trader who sells both pipe and sheet, or even someone who sells only pipe, should also monitor sheet prices to predict the direction of pipe prices sooner.

Pipe prices do not move independently of sheet and coil prices; monitoring one without the other provides an incomplete picture.

Key Factors at a Glance

How to Use This Knowledge

• Follow weekly sheet and coil prices as closely as you monitor pipe prices.
• Keep an eye on the price gap between Mannesmann and welded pipes to know which is more cost-effective for customers at any given time.
• Before making volume purchases, look at the recent trend in the sheet market, not just the current pipe price.

Anyone who recognizes this relationship will understand the market’s true direction much sooner than someone who only checks pipe prices.