The Turkish welded pipe market is still seeing weak demand and the situation is not expected to improve soon in view of the approaching month of Ramadan in Middle Eastern countries and the vacation period in Europe. Though welded pipe prices in Turkey have not changed in Turkish lira, in dollar terms domestic and export quotations have increased due to the strengthening of the national currency in Turkey. Thus, domestic prices of locally produced welded pipes have moved up by $20-55/mt over the past two weeks, while export offers have risen by $20-50/mt. European customers currently do not show significant interest in Turkish welded pipes as offers have become much higher in euro terms. Demand in the domestic market is also weak due to the proximity of Ramadan. Many local consumers are keeping their buying activities at minimum levels in the current period. Market sentiment will mostly remain pessimistic until September. Market insiders predict better demand for welded pipes in the autumn, but a real recovery of the market is not expected before the end of this year.
Current discount rates of Turkish steel pipe producer Tosyali Holding for local buyers are at 28-30 percent 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 $615-630/mt ex-works, excluding VAT, for cash payment. Hollow sections with wall thickness of 1 mm made from CRC as per EN 10219 are at $785-790/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 $625-640/mt ex-works for cash payment, while ERW pipes made from CRC are at the level of $810-815/mt ex-works (taking discounts into consideration).
Another domestic producer Yucel Boru provides discounts of 17 percent on their official price list for 60-day delay in payment. As a result, this steel pipe producer's range of domestic quotations of hollow sections made to EN 10219 are at $710-770/mt ex-works, while ERW pipes made to EN 10305-3/DIN 2394 are offered to local customers at $760-820/mt ex-works.
Turkish producer Borusan Mannesmann provides discounts of 9-11 percent for water pipes. Taking into account the discount level, domestic prices of 2"-4" black water pipes with wall thickness of 4.5-5.4 mm made to EN 10255 are in fact at the level of $680-710/mt ex-works for 90-day delay in payment. 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 $750-755/mt ex-works (taking discounts into consideration) for 90-day delay in payment.
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 $660-690/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $750-770/mt FOB, while the same products made from CRC are at $770-800/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 $680-710/mt FOB.