While domestic welded pipe prices in Turkey have moved sideways during the past week, demand has failed to indicate any significant improvement in this period and is still weak. Buyers in the local Turkish welded pipe market have maintained their cautious stance and they are making purchases at a slow pace. Having announced significant reductions in their domestic welded pipe quotations last week due to the sharp depreciation of the Turkish lira against the US dollar, Turkish mills have kept their prices stable as compared to Friday, May 25. As a result, 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 their domestic market has remained stable over the past week at $600-630/mt FOB.
Having fluctuated sharply last week, the Turkish lira-US dollar exchange rate has been steadier this week, easing concersn in the local Turkish welded pipe market. However, demand is generally expected to remain at low levels in the coming period due to theRamadan and the summer season. On the other hand, it is observed that buyers are maintaining a wait-and-see stance due to expectations of a further decline in hot rolled coil (HRC) prices.
Meanwhile, the cancelation of the temporary exemptions given to Canada, Mexico and European Union (EU) from the 25 percent Section 232 tariff has also led buyers to maintain a cautious stance. Faced with the US Section 232 tariffs, theEU is expected to speed up its safeguard investigation and impose a protective measure on steel imports. In this event, Turkey’s trade with one of its most important export markets for flat steel will be interrupted. This may cause domestic flat steel volumes to increase and may also put pressure on domestic flat steel prices. Market sources believe the impact of this pressure on flat steel prices will inevitably be felt in the local Turkish welded pipe market.