Prices have decreased by $15-20/mt in the Turkish welded pipe market since last week as demand has remained low and producers have not been able to fix higher levels in actual sales. The price rise, voiced earlier in April as a result of higher feedstock offers, had failed to gain acceptance in the market.
Domestic offers are standing at $470-510/mt ex-works, but some deals are heard at as low as $450/mt ex-works in the market. “Our demand is not as bad as demand for flat products now and there are some projects which are continuing. But of course we do not have the same demand as before Covid-19 and the market is unclear. As a result, despite the price decreases, there are still additional discounts possible in the market,” a pipe producer told SteelOrbis.
On the export side, prices have settled at $470-490/mt FOB, but there could be more discounts for real buyers. Turkish pipe producers have started to offer to the EU for July shipments, but demand has been sluggish for now. There is also uncertainty in quotas because of EUROFER's suggestion that the allowed import volumes should be reduced in order to protect the local industry. Buyers in the EU are waiting for the EC decision on the subject. As EU Trade Commissioner Phil Hogan said yesterday, April 21, there are a lot of concerns about possible stockpiling of steel, particularly in China, and about what would happen to these stocks when the restrictions are eased. Therefore, the safeguard measure may be revised. He also said certain third country exporters may also decide to sell their products at below cost or at any cost, with a view of gaining larger stakes in a smaller EU market.
** 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.