Import flat steel price increases in Turkey have pushed up the price of welded pipes in the country. We understand that prices of Russian HR coils (September production) for Turkey are now at around $580/mt C&F, up $20-40/mt on two weeks ago, while Ukrainian origin HR coils are offered at $540/mt C&F, marking an increase of $40-50/mt over the same period. During the past two weeks export prices of Turkish ERW pipes and hollow sections made from HRC have risen by $20-30/mt, with pipes and hollow sections made from CRC increasing by $40-50/mt. As a result, export prices of Turkish ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are now in the range of $600-620/mt FOB, while prices of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at $675-700/mt FOB. Meanwhile, export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from CRC are at the level of $700-720/mt FOB.
There is a slack demand in Turkey's domestic market due to the economic slowdown. Pipe prices in the local Turkish market have maintained their decreasing trend over the past two weeks, declining by $10-35/mt. Domestic market quotations of ERW pipes of 2-6 mm wall thickness made from HRC are at levels of $630-645/mt ex-works, while ERW pipes of 1.5 mm wall thickness made from CRC are at the range of $735-770/mt ex-works. Domestic prices of round, square and rectangular hollow sections grade A of 2-4 mm wall thickness made to ASTM A500 from HRC are at about $610-630/mt ex-works, while prices of hollow sections of 1.5 mm wall thickness made from CRC are at about $720-750/mt ex-works.
Market players inform SteelOrbis that interest from buyers in both the domestic and external markets remains rather weak. Players are not expecting any significant price increase in the coming weeks. However, Turkish suppliers of welded pipes are hoping for a revival in September of purchasing activity from local and foreign customers, which would help to increase prices and offset rising production costs.