Over the past week, inquiries for Turkish welded pipe in the export markets have increased slightly, though the number of concluded deals has not been at the desired levels. Turkish producers’ 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 has moved sideways week on week at $630-660/mt FOB. However, Turkish steelmaker’s offers for welded pipe are mostly closer to the upper end at around $650-660/mt FOB.
In September, the Manufacturing Purchasing Managers’ Index (PMI) in the euro zone decreased to a two-year low of 53.2 from August’s 54.6, which is one of the factors preventing demand for imported steel in Europe from gaining momentum. As a result, Turkish welded pipe producers are finding it difficult to attract demand from European buyers.
Another reason for Turkish welded pipe exports not reaching desired levels is that Turkish exporters are unwilling to offer discounts due to their high-priced inventories. Buyers’ firm bids for Turkish welded pipe are $10-20/mt lower than Turkish exporters’ quotations. As foreign buyers and Turkish exporters are failing to find a middle ground, it gets harder for Turkish exporters to accelerate their export sales.
Meanwhile, the European Commission’s ongoing safeguard duty investigation and its new antidumping investigation against imported welded pipe and hollow profile announced last week have increased the cautious mood in the European market. As a result, Turkish welded pipe exporters are preparing to search for alternative markets.