During the past week, demand in the local Turkish welded pipe market has indicated no change as domestic purchases have continued to be characterized by sluggishness. Despite the weakness of domestic demand, 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 domestic market has increased due to livelier demand received from export markets and higher export offer prices, moving up by an average of $20/mt week on week to $660-700/mt ex-works.
The decision of the Turkish Central Bank on July 24 to keep interest rates stable failed to meet expectations in the markets. As a result, the Turkish lira has once again sharply declined against the US dollar, while the volatility of the Turkish lira-US dollar exchange rate has increased. On the other hand, the perception of risk and the increased caution resulting from the US announcement of a possible sanction against Turkey has also caused the Turkish lira to depreciate faster. Hence, despite last week’s expectations of an acceleration in domestic welded pipe purchases in Turkey, it now appears more difficult for demand in the local Turkish welded pipe market to revive in the short term.