Despite recent flat steel price increases by local producer Erdemir, Turkish welded pipe producers have been unable to raise their prices because of the sluggishness seen in the Turkish welded pipe sector over the past two weeks. The lower end of Turkish export prices for ERW pipes and hollow sections made from HR products has remained at the previous level, but the upper end has dropped by $45/mt. Meanwhile, export quotations of ERW pipes and hollow sections made from CR products have decreased by $70-80/mt. Domestic prices of locally produced welded pipes have fallen down by $20-60/mt over the past two weeks. Market players concede that pipe manufacturers will try to increase quotations due to the higher production cost, but they are not optimistic regarding the market reaction. Welded pipe demand will improve a little in October-November, i.e., in the post-Ramadan period, and Turkish pipemakers will probably achieve some insignificant price increases during this time. However, with winter just around two months away, demand is subsequently likely to post a dramatic drop, making a price correction inevitable.
Export prices of Turkish ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are at the level of $630-640/mt FOB. Export offers of ERW pipes and hollow sections of 1.5 mm wall thickness made to ASTM A500 are at around $700-730/mt FOB. 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 for export at $660-670/mt FOB.
Domestic quotations of ERW pipes and hollow sections of 2-6 mm wall thickness made from HRC are at the level of $620-630/mt ex-works, while ERW pipes of 1.5 mm wall thickness made from CRC are at the range of $720-790/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 in the domestic market at $650-700/mt ex-works.