Demand in the local Turkish welded pipe market has been at low levels for some time now since buyers have been concluding purchases only in line with their immediate needs due to the sharp volatility of the Turkish lira-US dollar exchange rate. After the Feast of Sacrifice holiday, demand in the market has failed to improve and is still at low levels. On the other hand, the anticipated fall in domestic hot rolled coil (HRC) prices in Turkey before the holiday has materialized in the current week, accelerating the downward price revision by Turkish welded pipe producers.
It is observed that Turkish welded pipe producers have started to make deals only for advance payments to minimize risks from the fluctuating exchange rate. Some producers are reportedly not accepting orders for future production as they want to reduce their inventories due to the ongoing weakness of demand and exchange rate risks, and also given the lack of expectations of a revival in demand. In line with these developments, 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 have declined by $20/mt on the lower end and by $50/mt on the upper end to $630-650/mt ex-works.