Turkish welded pipe prices have remained stable over the past two weeks, while local demand has remained at a low level. On the other hand, export activity is still strong and suppliers are mostly offering for August production. Offers for domestic buyers are at $1,120-1,150/mt ex-works, while offers are at $1,140-1,160/mt FOB for export destinations. "Local demand is low and buyers are cautious due to high prices and the fluctuations in the Turkish lira-US dollar exchange rate. We are trying to keep current offer levels due to stable HRC prices, but they are currently higher than pipe offers in Turkey. We can say clearly that we have to increase our prices for September production, because we will receive HRC at a higher cost," a producer told SteelOrbis.
EU demand is reported to be lively for ex-Turkey welded pipes. Moreover, due to the high domestic prices in the European Union, buyers are trying to purchase imports as much as they can, and so orders for August production continue to be received. However, there may be some slowdown in the coming weeks. "Due to the quota situation, they might be ordering in smaller amounts. However, if local producers in the EU continue to raise their prices, it is said that buyers will be able to pay extra for the import materials that exceed the import quota. Even including the charges for exceeding the quota, import materials could become advantageous in the region because of the record high local HRC and pipe prices," a trader 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.