In the Turkish welded pipe segment, export demand has remained strong and prices have increased further over the past week. On the other hand, local demand has declined again in the local market because of the new lockdown which has been announced to tackle the pandemic. Trading activity is extremely low due to the Ramadan period and the imminent lockdown. However, prices have continued to increase because, instead of reflecting the increases in raw material prices immediately, Turkish pipe producers have preferred to increase their prices as they fill their production quotas. Prices have increased by $30/mt over the past week to $1,020-1,040/mt ex-works and to $1,030-1,050/mt FOB.
"HRC prices are already at $1,020-1,050/mt ex-works in Turkey and, after the cancellation of the export tax rebates in China, the market expects higher HRC prices. When you see the current levels of pipe prices, it is obvious there is still room to increase. But we do not want sudden increases. We just arrange our prices according to our production costs and raw material stock levels," a 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.