Export quotations of Turkish welded pipes continue to fall down due to low demand. In particular, weak demand is observed in the European market because of the financial problems in Greece, UK and Spain. Over the past two weeks export prices of Turkish ERW pipes have decreased by $50-70/mt. Domestic prices for welded pipes from some producers have declined by $15-30/mt over the period under review. Market insiders predict a further decline in export and domestic prices for welded pipes due to the usual summer lull and the weakening in offers of flats from local and foreign suppliers.
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 $660-680/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $740-760/mt FOB, while the same products made from CRC are at $760-780/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 $680-700/mt FOB.
Current discount rates of Turkish producer Tosyali Holding for local buyers have remained at 32-34 percent for 60-day delay in payment or even more for cash 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 $555-575/mt ex-works, excluding VAT. Hollow sections with wall thickness of 1 mm made from CRC as per EN 10219 are at $705-710/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 $560-595/mt ex-works, while ERW pipes made from CRC are at the level of $730-740/mt ex-works (taking discounts into consideration).
Another domestic producer Yucel Boru provides discounts of 14 percent on their official price list for 60-day delay in payment. As a result, the range of domestic quotations of hollow sections made to EN 10219 are at around $695-725/mt ex-works, while ERW pipes made to EN 10305-3/DIN 2394 are offered to local customers at $745-800/mt ex-works.
Meanwhile, although local Turkish producer Borusan Mannesmann has decreased discounts on its industrial pipes, water pipes and hollow sections from 6-8 percent to 5 percent for 90-day delay in payment, domestic quotations have remained unchanged in US dollars terms because of the weakness of the Turkish lira against the US dollar. Taking into account the discount level, 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).