Despite low demand, local Turkish welded pipe prices have increased by another $50-70/mt in the last two weeks because of higher hot rolled coil (HRC) and scrap price levels. Similar to previous years, demand is at low levels because of the year-end period and is expected to recover in the months of January and February. In addition, pipe producers are not in a hurry to reflect all the increases in HRC prices in their offers. Prices for February and March production are now at $800-850/mt ex-works for welded pipes in Turkey, but HRC producers are offering at $805-820/mt ex-works for April production. In this situation, it is clear that offer prices for April production welded pipes will increase. But first producers want to see if HRC prices are sustainable and they want to wait and observe the market conditions before they increase their prices. "We do not want to increase our prices further at the moment because demand is low and trade is slow traditionally. We want to wait and see the market situation but, if HRC prices stay above $800/mt, it is clear that we will have to increase our prices further in the new year," a producer told SteelOrbis.
On the export side, prices have also increased by $50-70/mt to $790-830/mt FOB, but demand has remained low due to the holiday season and the year-end period. Export demand is also expected to recover rapidly after the holidays because of the positive outlook in the target markets.
** 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.