In the local Turkish welded pipe market, demand has remained low and buyers have started to exert pressure on prices because of lower HRC prices in Turkey since last week. Some producers have already started to give discounts of up to $20/mt, but others do not want to update their offers, thinking that the current decreasing trend in the HRC segment is not going to last long. In addition, the producers who are not willing to give discounts have sold out their products almost until the end of March. Prices for welded pipes have not changed since last week and are at $800-850/mt ex-works for February and March production. "Buyers want to see lower pipe prices because of lower HRC prices, but they have forgotten that we did not reflect the increases in HRC prices fully in our prices. Today, producers are selling their HRC at around $800/mt for April and May production and buyers can also find pipe offers at $800/mt in the market. Price decreases make no sense because we have higher production costs. High stocks in the spot market have caused the current situation, but we believe that prices will increase for pipes soon," a producer told SteelOrbis.
On the export side, demand is still low but European buyers have started to check the markets because the outlook in the EU is clearer now. The Covid-19 lockdowns are expected to end at the latest by the beginning of March and vaccination processes are expected to be completed before the end of 2021. 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.