Over the past week, Turkish pipe producers have reduced their offer prices for the local and export markets due to the continuous downward movement in the scrap and hot rolled coil (HRC) segments in Turkey. Currently, the official levels have decreased by more than $5/mt to $500-520/mt ex-works. Firm bids from domestic customers have been reported at around $480-490/mt ex-works. According to market sources, local Turkish pipe buyers believe they have not yet seen the bottom, and so their demand for scrap is still weak. Also, one market source said, “After the decline in the import scrap market, local pipe buyers have shown little increase in demand.”
On the other hand,Turkish pipe producers’ export offers for October shipments have remained stable over the past week at $510-540/mt FOB, while $500/mt FOB is considered achievable for sizeable orders. According to market sources, after domestic and import HRC prices in Turkey moved downwards, buyers of Turkish welded pipe in the domestic and export markets are still showing weak demand as they think that HRC prices have not reached the bottom yet. One market source said, “Some pipe producers target HRC purchases at $420/mt ex-works in Turkey and import HRC at $400/mt CFR. Accordingly, the expectations are that Turkish pipe price can be decline again,” he said.
**Prices are given for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219, on theoretical weight basis.