Turkish welded pipe producers start to push up prices

The Turkish market for welded pipes has seen only moderate business activity. Domestic demand is weak as buyers still prefer to postpone purchases until next year. Turkish exports of welded pipes to Europe are affected by the uncertain economic situation in the region and the Christmas holidays, while exports to the Middle East and the US are better. Meanwhile, European buyers may resume purchasing in January in order to replenish stocks. However, over the past two weeks Turkish welded pipe producers have raised their domestic and export offers by $10-20/mt, citing the increase in coil prices. Demand for Turkish welded pipes is expected to stay sluggish next week amid the Christmas and New Year holidays. Starting from January, however, Turkish pipe makers will attempt to push up quotations amid higher costs of raw material and expected better demand.
 
Most offers of Turkish ERW pipes and hollow sections with 2-4 mm wall thickness made from hot rolled coil (HRC) of S235JR grade as per EN 10219 are being given to the domestic market at about $700-720/mt ex-works, while ERW pipes of 1.5 mm wall thickness made from cold rolled coil (CRC) are in the range of $780-800/mt ex-works. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255/DIN 2440 from S235 grade HR products are being offered in the domestic market at $720-740/mt ex-works.
 
Turkish producers are offering ERW pipes and hollow sections made from HRC of steel grade S235 JRH as per EN 10219 to foreign customers at around $690-710/mt FOB. Water and gas ERW pipes of 2.0-4.5 mm wall thickness made to EN 10255 from S235 grade HR products are being offered for export at about $710-750/mt FOB, while galvanized ERW pipes are being offered to export markets at about $1,000/mt FOB.