Due to the sluggish demand in the domestic market, prices of Turkish welded pipes have been fluctuating. The price policies of Turkish pipe makers indicate divergent tendencies, as some producers have decreased discount rates, while other manufacturers prefer to increase discounts and give lower prices in order to stimulate demand. In particular, Tosyali Holding is giving more attractive offers, helped by its use of its own flats. However, Turkish traders remain very cautious and are reluctant make any new bookings due to expectations of lower prices. In the domestic market, demand is expected to slow down in the coming period and this is expected to find a reflection in pipe quotations.
Local Turkish producer Borusan Mannesmann recently decreased discounts on its industrial pipes, water pipes and hollow sections from 11-13 percent to 8-10 percent. As a result, taking into account the discount levels, domestic prices of hollow sections with wall thickness of 2-4 mm made to EN 10219 are in fact at the level of $800-830/mt ex-works. Quotations for industrial pipes of 48-89 mm outside diameter and 2.0-3.0 mm wall thickness made to EN 10219/EN 10305-3 from HRC are at the level of $805-825/mt ex-works (taking discounts into consideration).
Current discount rates of Tosyali Holding are at 27-29 percent for cash payment compared with 20-22 percent last month. 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 $600-620/mt ex-works. Hollow sections with wall thickness of 1 mm made from CRC as per EN 10219 are at $750-760/mt ex-works. Actual offers of industrial pipes of 48-89 mm outside diameter and 2.0-3.0 mm wall thickness size made to made to EN 10219/EN 10305-3 from HRC are being given to the domestic market at $605-610/mt ex-works, while ERW pipes made from CRC are at the level of $780-800/mt ex-works (taking discounts into consideration).
Another domestic producer Yucel Boru still provides discounts at the previous level of 19-21 percent from their official price list. As a result, the range of domestic quotations of hollow sections made to EN 10219 are at around $640-700/mt ex-works, while ERW pipes made to EN 10305-3/DIN 2394 are offered for local customers at $685-740/mt ex-works.
Demand for Turkish welded pipes from foreign buyers remains very low as a further price correction is expected in the summer period. However, over the past week export quotations of welded pipes from Turkish producers have increased by $50-70/mt on the back of higher production costs. Further price decreases are anticipated as foreign buyers are unlikely to accept higher prices given the sluggish demand situation.
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 $810-850/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $900-930/mt FOB, while the same products made from CRC are at $910-950/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 $830-870/mt FOB.