Demand in the local Turkish welded pipe market has remained slack over the past week. Despite the weak demand, Turkish producers’ welded pipe prices have increased slightly in the given week due to the tight availability of supplies of hot rolled coil (HRC) - which is used as feedstock in steel pipe production - and due to the uptrend of HRC prices. However, the increase in HRC prices has not been completely reflected in producers’ welded pipe offers, and, while HRC prices in Turkey have increased by $107/mt on average since the beginning of March, welded pipe offers have risen by only $55/mt in the same period. On the other hand, market sources report that Turkish producers are continuing to offer discounts depending on buyers and tonnages.
Over the past week, most offers of Turkish 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 have increased by $10/mt on the lower end and by $20/mt on the upper end to $480-510/mt ex-works on actual weight basis. Despite weak demand, some buyers have concluded bookings as their inventories were on the low side, while other producers have continued to maintain a wait-and-see stance.
Meanwhile, Turkish producers’ offers for ERW pipes and hollow sections made from HRC of steel grade S235 JRH as per EN 10219 to foreign customers are still at around $490-520/mt FOB on theoretical weight basis, remaining stable week on week amid weak demand.