Local Turkish welded pipe market feels impact of higher raw material prices

Friday, 31 May 2019 17:20:09 (GMT+3)   |   Istanbul
       

Last week, SteelOrbis was informed that Turkish welded pipe and hollow section producers will gradually pass on higher raw material prices to their domestic offers. At the beginning of the current week, Turkish welded pipe producers have increased their domestic offers by $10/mt on the upper end. Despite the fall recorded in scrap quotations in the following days, they have kept their offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 at $5585-610/mt ex-works.

Market sources report that demand in the local Turkish welded pipe and hollow section market has been weak ahead of the end-of-Ramadan holiday, but, with the expectations of an increase in hot rolled coil (HRC) prices after the holiday, they believe domestic welded pipe offers may also continue their gradual uptrend. On the other hand, domestic pipe supply has decreased as Turkish mills have concluded sales to the European Union within the scope of EU’s July quotas, and so they are giving delivery terms of three-to-four weeks to local buyers. If Turkish producers’ sales to the EU continue in the coming period, supply volumes in the local Turkish welded pipe market may fall further, market players add.


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