Buying activity in the Turkish market for welded pipes has continued to slow down over the past two weeks due to Ramadan and the summer holidays, as well as due to the instability of Turkish lira against the US dollar and the euro. However, some Turkish pipe makers have started to raise their quotations on the back of higher import offers of flat steel and the anticipated market recovery in the September-October period. Over the past two weeks, domestic quotations of Turkish welded pipes have increased by $10-30/mt, while export prices have moved up by a maximum of $20/mt. However, political disturbances in the Middle East and North Africa and the financial crisis in Europe and the US may limit foreign demand for Turkish welded pipes. The domestic market for welded pipes in Turkey is foreseen to witness increased activity after the Ramadan holiday amid higher demand from the automotive and machinery industries, as well as from the construction sector. Meanwhile, rumours about a possible further strengthening of the US dollar are worrying buyers and causing a decrease in welded pipe bookings.
Turkish producers are offering ERW pipes and hollow sections of 2-6 mm wall thickness made from hot rolled coil (HRC) of steel grade S235 JRH according to EN 10219 or ASTM A500 to foreign customers at around $790-830/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC from most Turkish pipe makers are at around $850-880/mt FOB, while the same products made from cold rolled coil (CRC) are at $890-930/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 $810-860/mt FOB.
Most offers of Turkish ERW pipes and hollow sections of 2-6 mm wall thickness made from hot rolled coil (HRC) of S235JR grade according to EN 10219 are being given to the domestic market at about $800-820/mt ex-works, while ERW pipes of 1.5 mm wall thickness made from CRC are in the range of $880-910/mt ex-works. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255/DIN 2440 from S235 grade HR products are being offered in the domestic market at $800-830/mt ex-works.
Turkish producer Borusan Mannesmann provides discounts of around four percent for its welded pipes for 60-day delay in payment. Its quotations for industrial pipes of 60-89 mm outside diameter and 2.5-3.0 mm wall thickness made to EN 10219/EN 10305-3 from HRC are at the level of $915-935/mt ex-works (taking discounts into consideration), while hollow sections of 30 x 30 mm - 60 x 60 mm and 2-4 mm wall thickness are at $885-930/mt ex-works. Taking into account the discount level, Borusan Mannesmann's domestic prices of ½"-4" black water pipes with wall thickness of 2-4 mm made to EN 10255 are in fact at the level of $935-955/mt ex-works.