Over the past week, the Turkish lira has depreciated by four percent against the US dollar, reaching the 4.50 mark, which has increased the cautious sentiment in the Turkish market. In this context, Turkish welded pipe producers have increased their prices for the domestic market. Turkish producers’ offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235 grade as per EN 10219 to the domestic market have increased by $20/mt on the lower end as compared to the previous week to $650-680/mt ex-works, reaching almost the same price levels as offered to the export markets.
The start of Ramadan has led to expectations that domestic demand for welded pipe in Turkey will slow down. However, market sources state that some demand has continued to be observed in the local Turkish welded pipe market and that producers have concluded sales in the first days of Ramadan. With the downward revision of domestic hot rolled coil (HRC) prices in Turkey, Turkish welded pipe producers will likely conclude more domestic HRC bookings and their production costs will ease slightly. It is thought that domestic welded pipe prices in Turkey may face downward pressure if demand does not reach lively levels, if Turkish welded pipe producers continue their production without slackening and if this situation results in an oversupply problem in the market.