In the first week of the new year, the cautious mood in the Turkish market has intensified due to the volatility of the US dollar-Turkish lira exchange rate. Meanwhile, negative sentiment has prevailed in the global market due to increased risks in terms of economic growth and the impression that global economic growth has entered a slowing period. This week, the Turkish lira recorded a sudden depreciation against the US dollar, weakening to 5.80. While Turkey’s inflation rate continued to decrease on month-on-month basis to 20.3 percent in December, another issue for the Turkish economy is the possibility that the Turkish Central Bank may decrease interest rates in its first monetary policy committee meeting of the year. This decision may increase the fragility of the Turkish lira against the US dollar.
Against the backdrop of global economic vulnerability due to trade wards and the upward movement of the US dollar-Turkish lira exchange rate, buyers in the local Turkish welded pipe market are adopting a cautious stance. However, this week, trading activity in the market has improved slightly as Turkish traders have been replenishing some of their stocks due to the depreciation of the Turkish lira. However, this situation has not impacted prices and 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 moved sideways at $570-600/mt ex-works.