In line with the initial expectations, import welded pipe demand in the European Union (EU) countries has increased after the European Commission's announcement of its decision to impose provisional safeguard measures on 23 steel product categories in the form of a 25 percent out-of-quota tariff. Within the scope of these measures, the EU’s import quotas will be 296,274 metric tons for welded pipe for 200 calendar days as of July 19. As a result, buyers in the EU region have accelerated their welded pipe purchases in the past seven days to avoid the 25 percent import duty in case the quota in question is exceeded earlier than the end of the 200 days. Demand for Turkish welded pipe in the EU has also increased and deals from Turkey to the region have been concluded. Under the current circumstances, 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 moved up by an average of $20/mt week on week to $650-700/mt FOB.
On the other hand, although the EU’s provisional safeguard measures have had an immediate positive influence on Turkey’s welded pipe exports, the quota is expected to be exceeded before September. Accordingly, market sources state that Turkish welded pipe producers’ export sales are expected to maintain their current pace for some time but they may stagnate after the limit of the quota is reached, which may also cause serious problems for the Turkish welded pipe market.