The Turkish welded pipe market is still weak due to low demand from both local and foreign customers. Over the past two weeks, export prices of Turkish welded pipes have gone up by $10-50/mt. Due to cash shortages, Turkish welded pipe producers have decreased discount rates for local buyers in terms of cash payment. The market is expected to go slow in the summer period due to the month of Ramadan and uncertainties in the coil market. Producers think that buying activity will improve a little from September, but this will not really help to revive the market during the rest of the year.
Current discount rates of Turkish steel pipe producer Tosyali Holding for local buyers are at 29-31 percent for 60-day delay in payment or 31-33 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 $590-605/mt ex-works, excluding VAT for 60-day delay in payment. Hollow sections with wall thickness of 1 mm made from CRC as per EN 10219 are at $730-750/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 $600-615/mt ex-works for 60-day delay in payment, while ERW pipes made from CRC are at the level of $755-780/mt ex-works (taking discounts into consideration).
Another domestic producer Yucel Boru provides discounts of 17-21 percent on their official price list. As a result, this steel pipe producer's range of domestic quotations of hollow sections made to EN 10219 are at a minimum of $685-745/mt ex-works, while ERW pipes made to EN 10305-3/DIN 2394 are offered to local customers at $735-795/mt ex-works.
Turkish producer Borusan Mannesmann provides discounts of 9-11 percent for water pipes and 15-16 percent for hot rolled hollow sections of 2.5 mm and higher wall thicknesses. Taking into account the discount level, domestic prices of hollow sections with wall thickness of 4 mm made to EN 10219 are in fact at the level of $725-745/mt ex-works for cash payment. Quotations for industrial pipes of 48-89 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 $730-735/mt ex-works (taking discounts into consideration) for cash 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 $640-650/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $720-740/mt FOB, while the same products made from CRC are at $740-750/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 $660-670/mt FOB.