Due to the ongoing declines in domestic hot rolled coil (HRC) prices and the rapid strengthening of the US dollar against the Turkish lira, Turkish welded pipe producers have revised their prices for the domestic market downwards over the past week. As the Turkish lira weakened to 4.92 to the dollar in mid-week, all-time record, Turkish mills have made significant reductions to their domestic welded pipe prices on dollar basis. 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 the domestic market have decreased by $50/mt as compared to the previous week to $600-630/mt ex-works.
Due to Ramadan and the snap election to be held in Turkey on June 24, buyers and sellers in the local Turkish welded pipe market seem to be adopting a cautious stance, while the high volatility of the currency rate has intensified this mood of caution. Accordingly, demand for domestic welded pipe in Turkey has weakened in the past few days. Meanwhile, Turkish mills, having failed to reach their targets in terms of export sales volumes, are now more willing to shift their focus to their domestic market, prompting increased competition in the domestic market.