Demand in the local Turkish welded pipe market has remained strong in the past week and prices have increased by $20-30/mt in this period. Producers have sold out their April production and now they are offering for May production. Strong hot rolled coil (HRC) prices have supported welded pipe prices in Turkey but the main support has come from demand, mills state. Local buyers want to complete their bookings for May and June as soon as possible because they believe export demand is getting better day by day and that allocations may sell out soon. Buyers' stock levels are not sufficient and they believe welded pipe prices will increase further because hot rolled coil prices have already hit $850/mt ex-works in the country for June production and pipe producers must also decide their price levels for June according to HRC prices.
"We will see higher welded pipe prices, it is obvious. HRC prices have already hit $850/mt for June, $900/mt is also rumored in the market this week. Buyers want to renew their stocks before possible price increases, while export demand is also getting better every day. Spring is coming and traditionally we have always had good export demand in the spring period. Buyers know that and they are aware that they should be quick if they do not want to face allocation problems," a producer told SteelOrbis.
Prices in the Turkish welded pipe market have increased by $30/mt on the lower end and $20/mt on the upper end to $850-880/mt ex-works for the local market and to $840-860/mt FOB for export destinations.
** 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.