Over the past week, cautiousness in the global steel market has increased as the US President Trump increased the duties on Turkish steel imports to 50 percent. Following this news, Turkey’s welded pipe exports to the US, which had been concluding with low profit margins after the announcement of 25 percent tariff, are expected to almost come to halt in the coming period. Besides the additional taxes, sharp depreciations of Turkish lira against the US dollar and wide range of currency fluctuations is making it difficult for Turkish exporters to settle a price level. Market sources state that buyers in Latin America, the Middle East and Caucasus have continued to make Turkish welded pipe bookings, while Turkish exporters have also concluded welded pipe deals to European countries, all with small tonnages. Since most of the market players in Europe is on holiday, demand for welded pipe in the region is slack. According to latest data, EU has imported 29,400 mt of merchant bar and 13,500 mt welded pipe since the European Commission (EC) announced its provisional measures in the form of a out-of-quota tariff
As demand for Turkish welded pipe in export markets is generally weak, Turkish producers have decreased their offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235 grade as per EN 10219 to their export markets by $30/mt on the upper end to $650-670/mt FOB.