According to market sources, demand in the local Turkish welded pipe market has nearly ground to a halt this week following its sluggishness and the gradual downtrend of prices seen during the recent two months. Market sources state that the weakness of hot rolled coil (HRC) prices has also played a role in the downtrend of Turkish domestic welded pipe prices. While this no concluded deals have been heard in the market yet and while prices have moved on a stable trend, market state that prices are likely to decrease by $20/mt in the near term. Besides, pessimistic sentiment is prevailing among market players regarding the outlook for the market due to the ongoing political uncertainty and the strong probability of an early election in Turkey to be held in November this year.
As of Thursday, August 13, expectations of an early election in Turkey have gained strength and the US dollar has increased to a record level of 2.85 against the Turkish lira. Accordingly, Turkish welded pipe prices continue to gaining acceptance in the export markets.
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 at about $455-485/mt ex-works on actual weight basis, remaining unchanged 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 $430-440/mt FOB, remaining stable as compared to the price levels recorded in the previous week.