According to market sources, the declining trend of prices in the local Turkish welded
pipe market has gained speed during the past week against the backdrop of slack demand and due to declines seen in hot rolled coil (HRC) prices. Meanwhile, market sources do not expect demand to recover in the short term, while steel producers are experiencing problems in collection of payments, leading to a cash flow problem in the market.
Despite the strengthening of the US dollar against the Turkish lira during the past week, demand for Turkish welded pipes in the export markets has remained weak this week, raising concerns in the market. Under these circumstances, some producers have preferred to focus on the local market. As a result, despite the slight declines recorded in Turkish welded
pipe offers to the export markets, foreign buyers may still consider them to be at high levels.
Most offers of Turkish ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235 grade as per EN 10219 to the domestic market are now being given at about $460-490/mt ex-works on actual weight basis, down $30/mt on average over the past week.
Meanwhile, Turkish producers are offering ERW pipes and hollow sections made from HRC of steel grade S235 JRH as per EN 10219 to foreign customers at around $440-460/mt FOB, down $15/mt compared to the price levels recorded in the previous week.