Domestic demand for welded pipes in Turkey has been low in the past week, preventing producers from increasing their prices despite the firmness of HRC offers in the market. Stocks are high at the moment in the market and business activity is slow. But in this period of the year, low demand is normal due to seasonal factors. "The cold weather has finally arrived in Turkey and traditionally we see low demand in the winter period. Also, the market is really unclear and most players are trying to understand the price trend. Our main target now is to maintain our prices and to continue to receive as much demand as we can. High spot stocks are also another problem for the market and any increase can cause lower prices in the market. That is why both buyers and sellers are very cautious in terms of trade," a producer told SteelOrbis. Prices for welded pipes have not changed since last week and are at $800-850/mt ex-works for February and March production.
On the export side, demand has also remained low. EU quotas are mostly full for the period that ends on March 31, but buyers are expected to continue to buy for the second quarter soon. The main reason for the low demand is the widespread Covid-19 lockdown in the EU, and market players expect to see better demand after the lockdown period. Export prices have also not changed since last week and are still at $790-830/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.