In the past week, the Turkish welded pipe market has not seen any change either in prices or in demand. Both buyers and sellers are cautious due to the negative economic outlook and the downturn in the hot rolled coil (HRC) segment.
Buyers aim to evaluate the market conditions and are only purchasing to meet their urgent needs. Still, they are exerting strong pressure on pipe-makers, citing the lower HRC prices in Turkey. In this situation, discounts of up to $20/mt are possible for real buyers at the moment. On the other hand, sellers are trying to keep their current prices unchanged as there is still no gap between HRC and pipe prices in Turkey. Turkish pipe producers say it is impossible to restock with HRC under the current market circumstances.
"We do not have any margin for our production costs at the moment. If we buy raw materials for September and October at $1,100/mt ex-works, we will have to increase our prices accordingly, but this does not seem possible in the current market situation. Demand is low because the market is unclear and the economic outlook is unstable. Everybody has to be very cautious at the moment," a producer told SteelOrbis.
Turkish welded pipe prices are stable and still at $1,100-1,130/mt ex-works for local buyers and at $1,120-1,140/mt FOB for export destinations.
** Prices are given for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219, on theoretical weight basis.