During the past week, 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 have remained stable at $660-700/mt ex-works. Although no rise has been observed in raw material prices yet, Turkish welded pipe producers may have to revise their prices upwards in the coming period amid their increased production costs resulting from the increases in prices of other input costs.
This week, the US dollar strengthened rapidly against the Turkish lira, reaching a record level of 5.11, following the US government’s announcement of its decision to impose sanctions against Turkey. Today, August 3, the lira stands at the slightly lower level of 5.06 to the dollar since inflation in Turkey did not increase as much as expected in July, though the recovery of the Turkish lira remained limited as the 12-month inflation rate in Turkey was announced as 15.85 percent, according to official data issued today. In this content, some buyers in the local Turkish welded pipe market increased their bookings in expectation that the sharp depreciation of the Turkish lira will continue and cause domestic welded pipe prices to increase further on Turkish lira basis. As a result, demand for domestic welded pipe in Turkey has increased slightly, though Turkish mills have mostly focused on export sales rather than on their domestic market.