During the past week, prices in the local Turkish welded pipe market have remained unchanged and producers’ offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235 grade as per EN 10219 to their domestic market has moved sideways at $640-680/mt ex-works. Meanwhile, buyers have concluded deals only to meet their immediate needs.
Having remained on the sidelines for a while, Turkish welded pipe producers focused on the European Commission’s announcement, made on Wednesday, July 18, of provisional measures within the scope of its safeguard duty investigation. As the EU’s share in Turkey's welded pipe exports in the January-May period of this year was approximately 65 percent, Turkish mills consider the quotas, which will be implemented for the following 200 calendar days, to be very low. Apart from exporters, the possibility of oversupply in the Turkish welded pipe market due to reduced export volumes, which may result in downward pressure on domestic prices, has also raised concerns among Turkish welded pipe producers who are mostly focused on domestic sales.
However, the possibilities in question concern the longer term. With the EC’s announcement of the details regarding provisional quotas and duties for steel imports, Turkish buyers, who have been postponing their welded pipe bookings, are expected to step up their purchases somewhat in the short term.