Turkish welded pipe demand remains sluggish

Monday, 16 April 2012 11:36:19 (GMT+3)   |  
       

Buying remains slow in the Turkish market for welded pipes as construction activity in the country is recovering slowly. However, most Turkish pipe producers are anxious to avoid price decreases given their high production costs. Foreign buyers are reluctant to make large bookings and are trying to obtain discounts from Turkish pipe suppliers. Some Turkish producers have kept their prices stable, while others have made small reductions in order to attract buyers. Thus, domestic and export quotations of Turkish welded pipes have decreased by a maximum of $10/mt over the past two weeks. Despite some signs of weakness in the flat steel market, Turkish welded pipe makers do not intend to cut their quotations as production costs remain high, while buyers are waiting for a further price reduction. Market players believe export demand will not improve significantly in the short term, while domestic demand may continue to revive slightly in line with the warmer weather given the imminent construction season.

Most offers of Turkish ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235JR grade as per EN 10219 are being given to the domestic market at about $730-760/mt ex-works, while ERW pipes of 1.5 mm wall thickness made from cold rolled coil (CRC) are in the range of $820-840/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 in the domestic market at $740-780/mt ex-works.

Turkish producers are offering ERW pipes and hollow sections made from HRC of steel grade S235 JRH as per EN 10219 to foreign customers at around $740-770/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 $750-800/mt FOB.


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