With support from sufficient demand and higher hot rolled coil (HRC) offers, welded pipe prices in Turkey have increased by $10/mt over the past week to $590-610/mt ex-works, with mostly January production on offer.
Despite the increased weakness of the Turkish lira against the US dollar and the uncertainties in the domestic economy, buyers have continued restocking with January production and producers have increased their prices gradually. "We have had better demand for a while now, but we are still not in a rush to increase our prices too much. The Turkish lira is now at a record low and any sharp weakening can harm current demand levels. We have a good balance between prices and demand and we intend to sustain it. Demand comes first for us in these market conditions," a producer told SteelOrbis. However, the new increases in scrap prices have been accepted as a signal for a further uptrend in the market. "We have to reflect this increase in our sales prices, but first we have to evaluate the market situation. Sometimes we have to wait in order not to harm demand, but raw material prices increased at the same time and we have to bear the increase in production costs alone," another producer said.
On the export side, demand is also at moderate levels and prices have increased by $10/mt to $570-590/mt FOB.
** 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.