Turkish mills continue to raise welded pipe prices on back of higher flat steel costs

Prices for Turkish welded pipes have continued to rise sharply over the past two weeks in line with rising quotations for flat steel products. Over the past two weeks, domestic quotations of Turkish welded pipes have increased by $30-60/mt, while export prices have climbed up by $40-70/mt. However, Turkish welded pipe suppliers still fail to receive sufficiently strong demand from both local and foreign customers. Welded pipe buyers prefer to follow a wait-and-see policy. Market players hope for a price stabilization in the coming short-term period at least, as prices for flat steel have recently stopped rising and are now in the range of $830-850/mt for Turkish origin hot rolled coil (HRC) (March-April production) and at $750-780/mt CFR for import HRC material from the CIS. However, the further price movements of flat steel and welded pipes will depend on raw material costs. Buying activity in the Turkish welded pipe market is expected to improve not before the end of February amid growing construction activity.
 
Turkish domestic quotations of ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are at the level of $810-850/mt ex-works, while ERW pipes and hollow sections of 1.5 mm wall thickness made from CRC and HRC are in the range of $870-940/mt ex-works. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255/DIN 2440 from S235 grade HR products are being offered to the domestic market at $840-870/mt ex-works.
 
Most Turkish producers are offering ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC of steel grade S235 JRH according to EN 10219 or ASTM A500 to foreign customers at around $810-850/mt FOB on theoretical weight basis. At the same time, export quotations of ERW pipes and hollow sections of steel grade S235JR as per EN 10219 from top Turkish producers can reach $950/mt FOB.
 
 Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC from most Turkish pipe makers are at around $890-935/mt FOB, while the same products made from cold rolled coil (CRC) are at $910-950/mt FOB. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255 from S235 grade HR products are being offered for export at about $830-870/mt FOB.