Low demand and pressure from buyers have resulted in a $20/mt decrease in welded pipe prices in Turkey over the past week to $1,100-1,130/mt ex-works and $1,120-1,140/mt FOB. Buyers are cautious because of the uncertainty regarding the market outlook and they are buying only to meet their urgent needs. Lower prices are expected due to sufficient stock levels and buyers continue to exert more pressure on prices. On the other hand, producers are trying to maintain their current price levels and they think raw material prices are still strong and that prices can easily rebound if China imposes additional export taxes. In addition, they believe export demand will recover after the summer holidays.
"We think the current trend of prices will not last long. We expect better export demand after the summer holiday season and raw material prices are still strong. Scrap prices are still at around $500/mt CFR Turkey and iron ore prices are above $200/mt CFR China. When export demand improves, Turkish buyers will start restocking immediately. Otherwise, they will have to take risks in terms of availability of material," one producer told SteelOrbis.
** Prices are given for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219, on theoretical weight basis.