Over the past week, prices in the local Turkish welded pipe market have remained stable, while demand has continued to be characterized by sluggishness. Accordingly, 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 domestic market has moved sideways at $640-680/mt ex-works.
Market sources state that trading activity in the Turkish domestic welded pipe market has not recorded the expected recovery after the elections on June 24. In addition, the Turkish lira has one more depreciated against the US dollar, after it was announced that the inflation rate in Turkey is significantly higher than expected. This high volatility of the Turkish lira-US dollar exchange rate is preventing Turkish buyers from concluding new welded pipe deals.
On the other hand, ongoing trade tensions between the US and China and the widespread protectionist policies in the global market continue to increase the levels of caution among market players. Meanwhile, the European Union has voted in favour of provisional measures against steel imports, proposing a combination of a quota and a tariff as expected, in which a 25 percent tariff will apply for the volumes exceeding quotas. This decision is expected to come into force in mid-July. Amid these negative market conditions, Turkish welded pipe producers are finding it difficult to determine a strategy for the export markets, while Turkish buyers and producers continue to adopt a wait-and-see stance.
In the coming period, the local Turkish welded pipe market is expected to remain on hold and prices are expected to move sideways, though revisions may be observed depending on the fluctuations of the exchange rate.