Following the $30/mt rise seen in domestic hot rolled coil (HRC) prices in Turkey during the past week, some welded pipe producers have increased their domestic prices. Market sources state that these Turkish mills have revised their domestic welded pipe quotations in line with the HRC prices in their current inventories and not based on HRC spot market prices, and hence the increases in the domestic welded pipe market have been smaller than the rises in domestic HRC quotations. Some Turkish mills have even kept their domestic welded pipe prices stable week on week given the weakness of demand. Despite the weak demand conditions in the local Turkish welded pipe market, demand for Turkish welded pipe in the international markets has been dynamic and strong.
On the other hand, the US decision to impose a 25 percent tariff within the scope of the Section 232 probe on all steel imports, though with exemptions for certain countries, has negatively impacted on the Turkish welded pipe market, with market players becoming more pessimistic on the prospects for the future trend of the market. Despite the increasing trend of domestic HRC prices in Turkey, the initially positive atmosphere in the local Turkish welded market has diminished due to the Section 232 tariffs, while market sources have started to talk about a possible downward revision in the local Turkish welded pipe amid the loss of support from the export side. Meanwhile, Turkish welded pipe exporters are waiting to see the reaction in the international markets as the Section 232 tariff takes effect and also to see its impact on Turkey’s welded pipe exports.
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 widened over the past week and are now in the range of $680-720/mt ex-works, indicating a $20/mt increase on the upper end.
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 up $10/mt week on week to $710-740/mt FOB.