Turkish welded pipe export prices see stability, local prices keep climbing

Over the past two weeks, export prices of welded pipes from Turkish suppliers have stopped rising due to price stabilization for flat steel and low buying activity in the foreign markets. In January, exports of welded pipes from Turkey slowed down due to the holiday period. According to the Istanbul Mineral and Metals Exporters' Association (IMMIB), Turkey exported 140,536 mt of steel welded pipes in January, indicating a decrease of 19 percent from the December level but up 37 percent year on year. In January, the major markets for Turkish steel pipe exports were Iraq, UK and Jordan. The European market is still uncertain as buyers are abstaining from purchases in expectation of a price fall in line with the decreases seen in scrap and long product prices. Meanwhile, some market players are concerned there could be a further price increase for flats from Turkish producers due to high import offers from the CIS region. Current offers of hot rolled coil (HRC) from Russian producers are being given to the Turkish market at around $850/mt C&F, while prices for Turkish origin HRC are at $830-850/mt.
 
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. 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.
 
Domestic quotations of Turkish welded pipes have increased by $20-40/mt over the period under review supported by demand from local customers, in particular from the automotive, white goods, electrical goods and construction sectors. Demand is also expected to improve in the second quarter of 2011, in line with better weather conditions.
 
At the beginning of February, Turkish welded pipe producer Borusan Mannesmann has made upward adjustments to its official price list, increasing prices by three percent for natural gas pipes and boiler pipes and by four percent for industrial pipes. Taking into account the discount levels, Borusan's domestic prices of ERW pipes and hollow sections with wall thickness of 2-4 mm made from HRC as per EN 10219 are at around $830-890/mt ex-works. The producer's domestic prices of ½"-4" black water ERW pipes made to EN 10255 are at level of $880-900/mt ex-works, also taking discounts into account.