According to market sources, the declining trend of prices in the local Turkish welded pipe market which was triggered by slack demand has continued during the past week. Market sources state that Turkish welded pipe producers are concerned about a possible acceleration of the declining movement of local prices, which would result in increased losses. As a result, Turkish producers are trying to reduce their stock levels. Another concern in the market is the lack of a new government in the country. Meanwhile, market sources report that there is a cash flow problem in the market since Turkish producers have started to experience problems in collection of payments.
On the other hand, demand for Turkish welded pipes in the export markets has improved slightly this week, mostly due to the influence of the strengthening of the euro against the Turkish lira during the past week amid the ongoing political uncertainty in Turkey.
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 $480-530/mt ex-works on actual weight basis, down $25/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 $460-470/mt FOB, up $10/mt compared to the price levels recorded in the previous week.