The downward trend persists in the Turkish welded pipe market due to falling flat steel prices and weak demand. Over the past two weeks, domestic quotations of Turkish welded pipes have decreased by $5-10/mt, while export prices of ERW pipes have gone down by $10-20/mt. Demand for Turkish welded pipes from local buyers had continued to be weak. At the same time, market players report a slow improvement in buying activity from European consumers. Due to the weakness of the dollar against the euro, offers of Turkish welded pipes in euro terms have became attractive for European customers. However, market insiders do not foresee any significant price increase till the end of the year due to soft flat steel quotations and insufficient strong demand.
Domestic quotations of ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are at the level of $645-670/mt ex-works, while ERW pipes and hollow sections of 1.5 mm wall thickness made from CRC and HRC are in the range of $720-750/mt ex-works. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255/DIN 2440 from S235 grade HR products are being offered to the domestic market at $670-690/mt ex-works.
Current export prices of Turkish 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 are at the level of $680-690/mt FOB on theoretical weight basis. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made from HRC are at around $740-760/mt FOB, while the same products made from CRC are at $760-790/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 $700-710/mt FOB.
Turkey's welded pipe exports dipped slightly month on month in September. According to the Istanbul Mineral and Metals Exporters' Association (IMMIB), Turkey exported 135,936 mt of steel welded pipes in September, indicating a decrease of 6.8 percent from the August level but up 43.7 percent year on year. The demand from the Middle East, North Africa and the US continues to be firm. In September, the major markets for Turkish steel pipe exports were the US, Iraq and Algeria. Due to the decreasing value of the dollar against the euro, Turkish pipe makers will be looking for opportunities to export to the European markets in the coming period.