Over the past week, market expectations that prices in the local Turkish steel market will switch to an upward trend have strengthened as Turkish mills have increased their scrap bookings and asa scrap prices have risen to $315/mt CFR. Following a slight rise in domestic hot rolled coil (HRC) prices in Turkey two weeks ago, Turkish welded pipe producers have increased their prices over the past week. Accordingly, 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 by $20/mt to $550-590/mt ex-works. This uptrend of domestic welded pipe prices in Turkey is expected to continue in the coming weeks amid the ongoing increases in scrap prices.
This week, Turkish buyers have continued their welded pipe bookings from domestic sources, though demand is still not at desired levels. The main reason for buyers’ cautious behavior is the lack of confidence given the economic situation in Turkey. In January, confidence in Turkey's economy decreased by 4.4 percent month on month, according to the Turkish Statistical Institute. Despite the rises in domestic welded pipe prices in Turkey, demand is not expected to record sharp rises in the short term.