Despite low local demand, welded pipe prices in Turkey have continued to increase over the past week. The main support for the price increases has come from the export markets similar to the situation in the flat steel segments. In the meantime, in the local market the negative financial outlook causes low trade activity and sluggish demand since buyers are very cautious. On the other hand, Turkish welded pipe prices are considered attractive in the export markets. Due to the quotas in the EU, buyers are even purchasing to meet their needs for September, but Turkish pipe producers still have allocations for June, July and August.
"We are experiencing really weird days and unusual market conditions. Local buyers insist on lower prices, while foreign buyers even want to buy September production. We also find the current price levels to be unsustainable, but, when you check the current HRC price levels in Turkey, you can easily see pipe prices are far from reasonable. It is very clear that we should update our prices, but we always make this decision according to our raw material stocks. That is why it is certain that prices for pipes will increase further, because we will pay more for our upcoming HRC orders," a producer told SteelOrbis.
Turkish welded pipe prices have increased by $40/mt to 970-990/mt ex-works and by $60/mt to $980-1,000/mt FOB 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.