International demand for Turkish welded pipes is still observed to be sluggish amid buyers' concerns due to global protectionist measures and seasonal conditions. Although Turkish welded pipe suppliers have continued to export in small volumes over the past week, no deal for large tonnages has been made. Having reduced their offers on the lower end last week, 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 export markets has declined by $20/mt on the lower end and by $40/mt on the upper end week on week to $630-680/mt FOB.
Having concluded sales to the US at $700/mt FOB last week, Turkish mills have failed to make any more sales to the US in the current week. As a result, the fall recorded on the upper end of Turkey’s welded pipe export price range was more significant. The price range of $630-680/mt FOB is now only indicating offers given from Turkey to Europe and the Middle East.
The European Union (EU) voted Thursday, July 5, in favor of provisional measures against steel imports within the scope of the safeguard investigation launched in response to the Section 232 tariffs in the US. The measures in question are expected to go in effect in mid-July after the approval of the European Commission (EC), while the quota will be based on import volumes over recent years and a 25 percent tariff will apply for the volumes exceeding that amount. Since the EU is Turkish welded pipe producers’ most important export market, they are expected to experience difficult times after the measures go into effect, market sources state. Turkish welded pipe mills have accelerated their search for alternative markets, and so are focusing on the Middle East. However, currently the welded pipe trading volume in the Middle East is far below Europe’s; hence, it will be difficult for Turkish mills to compensate for the loss in welded pipe export volumes to Europe just with their sales to the Middle Eastern region.