Turkish welded pipe producers sharply reduce local and export prices

Wednesday, 21 August 2019 17:54:56 (GMT+3)   |   Istanbul

Over the past week, Turkish welded pipe producers have decreased their domestic market prices sharply due to the weakness of demand and since domestic hot rolled coil (HRC) prices in Turkey have fallen to $520-530/mt ex-works. In this context, producers’ domestic offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 has decreased by $25/mt on average to $530-550/mt ex-works. According to market sources, Turkish buyers’ firm bids for domestic welded pipes are generally at $520-530/mt ex-works. One market source commented, “Some buyers’ firm bids are even below $520/mt ex-works, but these prices are unacceptable. Turkish pipe producers cannot fall to these levels due to their costs.”

On the other hand, according to market sources, Turkish producers’ export offer range for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 has also decreased by $20/mt as compared to the price levels before the Feast of Sacrifice holiday to $550-570/mt FOB this week. Also, demand for Turkish welded pipe in the global market is still slack. According to market sources, buyers’ firm bids were at acceptable levels for Turkish producers and the producers made sales to North Africa, the Middle East and Europe, which is their main destination. However, one market source indicated that the demand received by Turkish pipe producers from Europe is weak and European buyers are cautious due to import quotas, while another market contact indicated that the depreciation of the sterling against the US dollar has negatively impacted demand for import pipe in the UK.

“Turkish pipe producers have full stocks and are trying to reduce stock levels, but European buyers are slow to make bookings for September-October shipments. Also, Turkish pipe producers’ profit margins have decreased significantly as their prices have been decreasing for a long time now,” a market source told SteelOrbis.

The remaining EU quotas for Turkish welded pipe and hollow sections now stand at 128,377 mt and 310,836 mt, respectively. The total quotas for both products were respectively 156,113 mt and 397,232 mt.

Most Recent Related Articles

Court limits amount of iron ore slag CSN can pile near mill

US import wire rod market unchanged week-on-week

Price stable for Brazilian rebar exports

Turkey books more scrap from the US, Europe

Japanese crude steel output up 5.9 percent in Jan from Dec