Prices have remained stable in the Turkish welded pipe market over the past two weeks but, due to low demand and the negative outlook, discounts of up to $10-15/mt are now possible for actual buyers.
Due to the unclear economic outlook, the fluctuations in the Turkish lira-US dollar exchange rate and sufficient stock levels, demand is low in the Turkish welded pipe market. Buyers have been exerting more pressure on prices because they think hot rolled coil (HRC) prices will decline soon due to the low export demand for Turkish HRC. "The market expects a decline for HRC products soon and they believe pipe prices will decline accordingly. Producers who have low-cost pipe stocks want to ease their stock levels and they are accepting firm bids at discounts of up to $10-15/mt. The market outlook is negative because HRC producers have failed to sell out their October production rapidly like they did in previous months and export demand has also slowed down," a producer told SteelOrbis.
Offers for domestic buyers are at $1,120-1,150/mt ex-works, while for export destinations the prices are at $1,140-1,160/mt FOB. Overseas demand has also started to slow down due to to coming summer holidays in Europe.
** 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.