After the US government removed the temporary exemptions of some countries from the Section 232 tariffs, Turkish welded pipe producers started to conclude export deals to the US market. However, over the past week demand for Turkish welded pipe exports has again slackened. Due to the approaching end-of-Ramadan holiday and the uncertainty caused by the EU’s safeguard duty investigation, Turkish welded pipe exports have continued to some extent though at a significantly slower pace, with market players adopting a wait-and-see stance.
Since no ex-Turkey welded pipe deals have been concluded to the US over the past week, Turkish welded pipe quotations have decreased by $30/mt on the upper end, returning to the same price levels as two weeks ago. As a result, 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 decreased by $15/mt on the lower end and by $30/mt on the upper end week on week to $635-670/mt FOB.
Meanwhile, early this week, Turkish producers increased their hot rolled coil (HRC) prices for their domestic market by $15/mt on average. Market sources state that prices in the local Turkish HRC market have reached the bottom and Turkish mills might have been increased their prices in order to prevent market players from thinking that prices may decrease further. Thus, the uptrend of domestic HRC prices in Turkey may be reflected in Turkish welded pipe prices after the end-of-Ramadan holiday. However, due to the ongoing uncertainty regarding the EU’s decision for Turkish mills within the scope of its safeguard duty investigation, Turkish welded pipe exporters are staying away from taking orders due to the possibility that they may be subjected to tariffs before their cargoes reach customers. If the EU’s decision to impose tariffs or quotas varies depending of the country, Turkish welded pipe producers may lose their price advantage and may exit the European market accordingly.