Welded pipe prices soften in Turkey amid ongoing sluggish demand

Friday, 19 April 2013 14:48:04 (GMT+3)   |  

The Turkish welded pipe market is still sluggish as activity in domestic end-user sectors remains slow. Most local buyers have cut their purchases, insisting on discounts following the downtrend in the flat steel segment. As a result, domestic quotations of Turkish welded pipes have declined by $10/mt over the past two weeks. Only in some cases the bottom end of export prices has declined by $10/mt over the past two weeks, while the upper end of the price range has remained at the previous level mainly thanks to strengthening demand for Turkish welded pipes from the US and Iraq. However, most local and foreign customers prefer to maintain a wait-and-see approach in order to evaluate further market developments. It is still unclear when the market will improve in Turkey, as the global markets are also weak, and buyers still expect further price falls.

Most offers of Turkish ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235JR grade as per EN 10219 are being given to the domestic market at about $660-680/mt ex-works on theoretical weight basis, while ERW pipes of 1.5 mm wall thickness made from cold rolled coil (CRC) of DC01 steel grade are in the range of $750-770/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 $690-710/mt ex-works.

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 $670-700/mt FOB, while quotations of pipes made from CRC of steel grade S235 and S275 are at around $760-790/mt FOB on actual weight basis. 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 $700-730/mt FOB.


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