Prices for welded pipes have again weakened in Turkey under pressure from low demand. Domestic offers are standing at $480-510/mt ex-works versus $490-515/mt ex-works seen last week, while additional discounts are possible though of limited size. “We continue to evaluate firm bids from real buyers but we think hot rolled coil (HRC) prices have no room for new discounts due to the latest level of scrap prices. Due to the current situation, big discounts are not possible for welded pipe at the moment,” a producer told SteelOrbis.
On the export side, prices have also decreased, softening by $10/mt on the lower end to $480-500/mt FOB. Demand is still insufficient and there are some logistical issues also. According to sources, there are some problems at ports as vessels that continue to arrive cannot unload products since there are some delays in customs paperwork on the buyers’ side.
On the other hand, Turkish HRC producers are trying to increase their prices after selling some material to the export markets and as scrap prices have been heading to $250/mt CFR and above for HMS I/II 80:20. However, there are doubts that HRC sellers will manage to reflect the increase in deals since end-user demand in Turkey is still very weak. Without an increase in demand, any price increase for HRC is expected to be short-lived.
** 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.