Demand at standstill in Turkish welded pipe market

Friday, 03 April 2020 15:21:11 (GMT+3)   |   Istanbul
       

Demand has remained very low in the Turkish welded pipe market, while prices have not changed since last week. Despite the decreases in hot rolled coil (HRC) prices, Turkish welded pipe producers have chosen to keep their prices stable at $490-515/mt ex-works, but discounts are possible for buyers. “It is meaningless to revise our prices according to HRC levels for now, because we have very low spot demand but long-term contract sales are continuing at the moment. We consider every demand and give discounts according to tonnage, payment and delivery requests,” a producer told SteelOrbis.

On the export side, demand has been close to zero, while prices have remained at $490-500/mt FOB, with discounts possible for real buyers. The EU Commission (EC) did not add any quota for welded tubes under the “other countries” heading on April 1 and the new allocations will be opened on July 1 this year. On the other hand, it is heard that the European Steel Association (EUROFER) has approached the EC with the suggestion to revise import restrictions in the current situation when production and consumption in Europe has dramatically decreased. “Reflecting the unprecedented implosion of the European steel market, the current quota levels need to be drastically reduced immediately for a period of six months, and by about 75 percent, to align them with the devastating situation,” the statement reads.

** 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.

 


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