Some improvement of demand has been seen in Turkey’s welded pipe segment as more confident buyers have found the offered levels acceptable. However, local producers have been unable to increase their offer prices despite stronger scrap and hot rolled coil prices, mainly due to currency fluctuations.
Customers have been exerting pressure and, as a result, local prices have remained at $460-490/mt ex-works. “Buyers have insisted on current levels and we did not want to lose demand. But, after these sales, prices are expected to increase,” a pipe producer told SteelOrbis.
On the export side, demand has also improved but buyers are cautious due to concerns regarding a possible second wave of the Covid-19 pandemic. “Demand is certainly better than two weeks ago. We have price inquiries mostly from Romania and Germany at the moment. But of course we cannot compare current demand with the demand which we had before Covid-19,” a source said. Export prices are at $460-480/mt FOB, stable over the past week.
** 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.