Over the past week, trading activity in Turkey and in some of the Turkish welded pipe exporters’ target markets, such as the Middle East, has been weak due to the end-of-Ramadan holiday. Meanwhile, scrap prices moved downwards in the recent deals concluded by Turkish mills during the one-week holiday period, though the declines in scrap prices have not been reflected in the prices of flat steel and hot rolled coil (HRC) in Turkey. Accordingly, Turkish producers’ offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 have remained stable at $580-600/mt FOB. Additionally, SteelOrbis has heard that Turkish mills are accepting buyers’ firm bids below $580/mt FOB for large volumes.
Meanwhile, Turkish welded pipe producers have started to make sales to Europe for the new quota period starting in July, European buyers are cautious about making new bookings since the quota may be filled quickly. This week, demand for Turkish welded pipe in Europe has slowed down as buyers are expecting lower prices for both welded pipes and flat steel products.