The welded pipe market in Turkey has quietened during the month of Ramadan, with prices indicating a decrease. Over the past two weeks domestic quotations of Turkish welded pipes made from HRC have decreased by $35-40/mt, while prices of ERW pipes made from CRC have gone down by $20-55/mt. At the same time, export offers of welded pipes from Turkish producers have remained unchanged over the period under review. However, market insiders anticipate an increase in demand following Ramadan and the summer holidays as consumers become active. Welded pipe prices may rise into the fourth quarter on the back of expected hikes in substrate costs.
Domestic quotations of ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are at the level of $635-660/mt ex-works, while ERW pipes and hollow sections of 1.5 mm wall thickness made from CRC and HRC are at the range of $695-780/mt ex-works. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255/DIN 2440 from S235 grade HR products are being offered to the domestic market at $655-680/mt ex-works.
Turkish producer Borusan Mannesmann provides discounts of around 10 percent for its welded pipes. Its quotations for industrial pipes of 60-89 mm outside diameter and 2.5-3.0 mm wall thickness made to EN 10219/EN 10305-3 from HRC are at the level of $790-795/mt ex-works (taking discounts into consideration). Taking into account the discount level, Borusan Mannesmann's domestic prices of ½"-4" black water pipes with wall thickness of 4.5-5.4 mm made to EN 10255 are in fact at the level of $830-840/mt ex-works.
Another domestic producer Yucel Boru provides discounts of 17-18 percent on their official price list. As a result, this steel pipe producer's range of domestic quotations of hollow sections made to EN 10219 are at $690-760/mt ex-works, while ERW pipes made to EN 10305-3/DIN 2394 are offered to local customers at $735-805/mt ex-works.
Current discount rates of Turkish steel pipe producer Tosyali Holding for local buyers are at 27-29 percent for 60-day delay in payment. As a result, taking into account the discount levels, domestic prices of hollow sections with wall thickness of 2-4 mm made from HRC as per EN 10219 are in fact at around $615-630/mt ex-works. Hollow sections with wall thickness of 1 mm made from CRC as per EN 10219 are at $780-785/mt ex-works. Current offers of industrial pipes of 48-89 mm outside diameter and 2.0-3.0 mm wall thickness made to made to EN 10219/EN 10305-3 from HRC are being given to the domestic market at $625-640/mt ex-works, while ERW pipes made from CRC are at the level of $790-810/mt ex-works (taking discounts into consideration).
Current export prices of Turkish ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC according to EN 10219 or ASTM A500 are at the level of $650-670/mt FOB on theoretical weight basis. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $730-750/mt FOB, while the same products made from CRC are at $750-770/mt FOB. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255 from S235 grade HR products are being offered for export at about $670-700/mt FOB.