Having declined by $10/mt in the previous week, Turkish 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 export market has remained stable week on week at $620-650/mt FOB. Following the export sales concluded last week, it is observed that international demand and prices inquiries for Turkish welded pipe exports are now lower as compared to last week.
According to October data, the downward risk of the Eurozone economy has increased for the fourth quarter. This is observed to be an obstacle for European demand for Turkish welded pipe to accelerate. Only half of the quota imposed by the European Commission for welded pipe imports has been filled for now. But after quota is filled by 90 percent, a collateral guarantee will become mandatory for the potential 25 percent of duty which will be added to deal price if quotas are exhausted. As a result, Turkish exporters welded pipe sales to the European market is expected to fall significantly towards the end of 2018.