Over the past two weeks, demand in the local Turkish welded pipe market has been slack since buyers are still maintaining a wait-and-see approach due to the expectations in the market for a further decline in prices. Since Turkish producers’ offers for hot rolled coil (HRC) - which is used as feedstock in steel pipe production - have moved downwards during the past two weeks, Turkish pipe producers have reduced their welded pipe offers to their domestic market by an average of $70/mt in the given period.
Accordingly, 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 are in the range of $550-600/mt ex-works, down $70/mt on average.
Meanwhile, Turkish producers’ export offers for the same product have decreased by $70/mt over the past two weeks to $560-570/mt FOB on theoretical weight basis amid the downtrend of HRC prices in the Turkish market and the declines in Chinese pipe prices, and also due to the strengthening of expectations for a further decline in global steel prices.