As domestic hot rolled coil (HRC) prices continue their upward movement, it is observed that Turkish welded pipe producers are not in a rush to revise their domestic offers in tandem with the HRC market. Turkish welded pipe mills consider the current domestic HRC quotations, which have increased once again this week to $590/mt ex-work, to be on the high side, while they believe that actual deals in the local Turkish HRC market are being concluded at lower price levels.
Last week, some domestic mills had raised their domestic welded pipe offers, while others had decided not to increase their offers. In the current week, welded pipe producers in Turkey have kept their domestic offers stable week on week despite the rises seen in the local HRC market. Over the past week, Turkish welded pipe producers have concluded new domestic sales, though transaction activity has slackened. Similarly, Turkish welded pipe export activity has slowed down slightly in the past seven days.
The list of the countries exempted from the 25 percent Section 232 import duty in the US was expected to be announced on March 23, and so market players have partially suspended their activities during the past week in order to monitor the market. On Thursday, March 22, US Trade Representative Robert Lighthizer announced a list of countries that will be temporarily excluded from the Section 232 steel and aluminum tariffs. Following the release of the list which includes the European Union, Brazil, Argentina, Australia and South Korea, Turkish steel mills are expected to look for alternative export markets with freight and delivery time advantages to compensate the loss of an export market such as the US.
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 the domestic market has remained stable over the past week at $680-720/mt ex-works, though purchasing activity at price levels higher than $700/mt ex-works has lost momentum.
Meanwhile, Turkish producers’ export prices for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 have moved sideways at $710-740/mt FOB.