Despite higher hot rolled coil (HRC) quotations, it was observed that Turkish welded pipe producers preferred to maintain their prices unchanged last week due to sluggish demand. However, hot rolled coil (HRC) inventories of some producers are nearly finished and so it is expected that they will be forced to conclude HRC deals at current price levels. It is believed that, accordingly, welded pipe producers may increase their domestic quotations as they replenish their HRC stocks at higher prices.
On the other hand, the announcement of the European Commission’s safeguard investigation on 26 steel product types at the beginning of the current week, including welded pipe and hollow structural sections (HSS) tubing, has had a negative impact on the markets in Turkey. The first impact of the announcement was to exert additional downward pressure on local Turkish HRC prices, while it also caused welded pipe producers to conclude HRC purchases only in line with their needs. Additionally, Turkish welded pipe producers’ search for alternative export markets has accelerated, firstly due to the 25 percent Section 232 tariff in the US and secondly due to the EC’s announcement of its investigation.
Under these circumstances, Turkish welded pipe mills have kept their domestic offers stable week on week. Domestic welded pipe demand in Turkey has been weak, while both producers and buyers are not very active as they prefer to monitor developments in the global market. While international demand for Turkish welded pipes is observed to be on the stagnant side, purchases are being concluded for smaller tonnages as compared to previous weeks.
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 has remained stable over the past week at $680-720/mt ex-works.
Meanwhile, Turkish producers’ export prices for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219 have moved sideways at $710-740/mt FOB.