The Turkish welded pipe market has seen a sharp increase in prices over the past week, following the recovery of demand. Export business activity has remained strong and local trade has improved as a result of buyers’ restocking due to fears of further price increases. In addition, there is an expectation that local hot rolled coil (HRC) prices will exceed $1,100/mt ex-works after Ramadan, which would trigger higher offers for pipes too.
In this situation, Turkish welded pipe producers have managed to sell out their production until the end of June and some even for July. Prices have increased by $60/mt over the past week to $1,080-1,110/mt ex-works and to $1,090-1,110/mt FOB.
"Everybody knows prices will increase further after Ramadan and they wanted to restock before that happens. Producers have sold good volumes and export demand is also good, especially for July production because of the EU quotas. Currently, HRC prices are at $1,060-1,080/mt ex-works in Turkey, but the market is already talking about $1,100-1,200/mt for HRC because of the cancellation of tax rebates in China. It is clear that we will see further increases also in pipe prices," 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.