Toscelik: US drilling pipe demand surprisingly strong this year

During his speech at the SteelOrbis Market Talks Meeting held in Adana on March 24, Turkish steelmaker Toscelik's foreign trade director Bülent Saygılı indicated that pipe demand from the US drilling industry is surprisingly strong this year, adding that Toscelik has already concluded a pipe booking with July shipment for the US. Mr. Saygılı added that, despite the Turkish pipe sector's difficulties in concluding exports, Toscelik is not facing any problems thanks to its product range. Saygılı underlined that Turkey's major pipe markets include the UK and Iraq, besides the US, with North Africa also an attractive market for the Turkish pipe industry.
 
Despite the slow activity in some regions such as Europe, thanks to flat product demand due to global economic growth expectations in 2012, Saygılı stated that they do not expect a decrease in the short term in global sheet prices, which are in line with each other across the world. He pointed out that iron ore prices are not expected to decrease below $120/mt thanks to high oil prices and current demand. Saygılı also indicated that economic growth is expected to accelerate and this might directly affect flat steel demand.
 
Regarding Turkey's increasing scrap demand, Mr. Saygılı said that scrap imports are required to maintain production, adding that Tosyalı Holding continues to work on alternatives.
 
Turkey's largest pipe producer Tosçelik ranks as Europe's third largest steel pipe and hollow section producer as of the current year. Tosçelik produces 2.1 million mt of liquid steel, 2.2 million mt of steel pipe and hollow sections and 500,000 mt of structural steel annually and has an annual cut-to-length and slitting capacity of 1.2 million mt.