The Turkish welded pipe market started this week with positive expectations due to China’s tax rebate cancellations, but the declines in the scrap prices have affected the welded pipe trade negatively as buyers have been exerting additional pressure on finished product suppliers. The expected price increases were thus replaced by a decline by $30/mt to $1,020-1,050/mt ex-works for local buyers and a decrease to $1,040-1,060/mt FOB for export destinations. In addition, sellers' desire to reduce their stocks due to the fear of a further downturn in prices has also resulted in some additional discounts.
"Although there was no big decrease in HRC prices due to falling scrap prices, it is not normal for pipe prices to decline. However, traders and manufacturers who had higher stocks concluded panic sales. In addition, low export demand has weakened the outlook in the pipe market. In the past, there were many times when the domestic market was weak, whereas exports were always strong. The current situation has brought financial difficulties: of course, large HRC producers can tolerate financial costs, but small and medium-sized companies unfortunately do not have such an opportunity. That is why we have seen panic selling throughout the week," a producer told SteelOrbis.
** Prices are given for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219, on theoretical weight basis.