SMM Weekly Maintenance Summary for September 7

[Indonesia] Billet prices are currently stable at around 480 USD/metric ton FOB. The situation is similar for other products, whose prices have also remained stable. This is due to the absence of any significant factors or variables capable of triggering price changes. Buyers are still waiting to see how the situation develops, while no steel mills have lowered their prices yet, as raw material costs may be hindering such a move. The only change is a water shortage in Indonesia, which may now be affecting logistics, as there are reports that this is causing shipment delays until December. This is likely to become a strategy used by steel mills to attract customers, as it is unlikely they will raise prices again given that market prices are already considered high. If the situation worsens, export freight costs will rise, which will inevitably lead to an increase in FOB prices, or the delivery will be postponed again.

Cenergy Holdings' steel pipes segment, Corinth Pipeworks, has been awarded the line pipe supply package for the Rovuma LNG Phase 1 Project in Mozambique, awarded by the Area 4 partners led by ExxonMobil Moçambique. Valued between USD 200-250 million, the contract calls for approximately 250 km (120,000 tonnes) of longitudinally submerged arc welded (LSAW) steel pipes, ranging from 20 to 24 inches in diameter, for the project's offshore pipeline network, with scope also including anti-corrosion and concrete weight coating. Production will take place at Corinth Pipeworks' Thisvi facility in Greece. The Rovuma LNG project, operated by Mozambique Rovuma Venture, is expected to have a production capacity of 18.6 million tonnes per annum of LNG.