Turkish pipe producers are reported to have ensured full capacity utilisation until the end of 2020.
Turkish pipemakers have concluded many sales to the EU after receiving inquiries from the bloc for the third quota term that will start in January. Most mills are consequently fully booked until the end of the year.
As a result of higher utilisation, Turkish electric resistance welded (ERW) pipe made from S235 grade hot rolled coil prices increased to $580-590/tonne fob Turkey theoretical weight. Even $600/t fob offers are available from some producers.
A Turkish pipe producer tells Kallanish: “EU buyers have returned much earlier than expected. We are still receiving inquiries that we are unable to respond to. I had to refuse a bid at $580/t from my regular customer in Portugal today.”
Another producer says he is looking for subcontractors to be able to respond to inquiries. “There is no reason to bemoan. Ok, we will have to wait until December to ship the material to the EU but at least we have ensured utilisation till then. I don’t understand why some producers are still unsatisfied. I cannot find a subcontractor; almost all producers are fully booked.”
Domestic demand for welded pipe in Turkey remains strong.
