Business activity in the Turkish welded pipe market has declined, following restocking activities, and so prices have failed to recover for now. In addition, with the negative effect of the currency fluctuations, buyers now want to see a more stable market for trade. On the other hand, market players are confident there will be a rise in welded pipe offers with or without a demand improvement. Local hot rolled coil (HRC) prices have hit $920-940/mt ex-works in Turkey, while current pipe offers are still at $880-910/mt ex-works on theoretical weight basis for May production. In this situation, it is not possible for pipe producers to continue at current price levels because of their high production costs.
"We do not want to increase our prices when demand is low, but HRC prices are increasing everyday. We cannot ignore this situation because we also have to buy raw materials for the coming months. The loss of strength of the lira against the dollar causes more trouble each day and buyers are cautious. But sellers are also cautious. They are worried about customer payments. The financial outlook is really bad in the country, and some sellers have already begun to limit their sales in line with customers' credit limits and this also affects local demand negatively, " a producer told SteelOrbis.
On the export side, prices are also stable, at $870-890/mt FOB and demand is good. "Our export demand is good, but of course is not enough to fill our order books. We expect better demand after Easter and even better demand after the relaxation of Covid-19 measures. After these improvements, we can talk about a real demand increase," an exporter told SteelOrbis.
** Prices are given for ERW pipes and hollow sections with 2-4 mm wall thickness made from HRC of S235 grade as per EN 10219, on theoretical weight basis.