Having slackened in the last week of May with fewer purchases, international demand for Turkish welded pipes has revived once again this week with Turkish suppliers concluding welded pipe export sales. Turkish producers’ welded pipe export quotations have started to move up in the current week after the revival seen in demand and the high-priced welded pipe sales concluded to the US. As a result, 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 their export markets has increased by $20/mt on the lower end and by $30/mt on the upper end week on week to $650-700/mt FOB.
With the US canceling the exemptions of Canada, Mexico and the European Union (EU) countries from the Section 232 tariffs towards the end of last week, the uncertainty which prevailed in the global steel market has dissipated somewhat. After the Trump administration's announcement, Turkish steel mills have once again gained a price advantage in the US market and so it is now possible for them to conclude sales to the US. In fact, SteelOrbis has been heard that a Turkish hollow section sale to the US has been made at $700/mt FOB, excluding duties. As the price level in this deal is quite high, the upper end of Turkey’s welded pipe and hollow section export offers has increased significantly as compared to last week.
Following the US decision to impose the 25 percent Section 232 tariff on steel imports from the EU, there are increased expectations that the EU will accelerate its own safeguard duty investigation. While Turkish suppliers continue to conclude welded pipe sales to the EU market, Turkish mills are concerned that import duty may be imposed within the scope of the EU’s ongoing investigation. A committee consisting of board members of the Turkish Steel Exporters' Association (CIB) will have a meeting with EU officials at the European Parliament tomorrow, June 7, about the safeguard investigation in question. After the meeting, the fate of Turkish steel producers’ future sales to the region is expected to be clearer.