Transaction activity in the local Turkish welded pipe market has failed to reach sufficient levels due to uncertainty ahead of the general election to be held on June 7 and given the tight availability reported in the market. A producer in Turkey's Iskenderun region is experiencing problems with its welded pipe production, contributing to the tight supply particularly seen in this region.
On the other hand, demand in the Middle East market for Turkish welded pipe is currently at medium levels, while demand from Europe and the US market has slowed down over the past week. Meanwhile, Turkish welded pipe export prices are expected to increase against the backdrop of the rises seen in prices of upstream materials such as scrap and hot rolled coil (HRC) over the past two weeks.
Most offers of Turkish ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 are being given to the domestic market at about $550-560/mt ex-works on actual weight basis.
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 $480-520/mt FOB. Water and gas ERW pipes with 20-114 mm diameter and with 2.0-4.5 mm wall thickness made to EN 10255 from S235 grade HR products are being offered for export at about $515-550/mt FOB.