Turkish pipe quotes mostly stable amid numerous uncertainties

Turkish pipe producers are keeping their prices unchanged from last week. However, uncertainties are seen mounting in the market following the US’ warning to Turkish companies working with sanctioned Russian companies.

Pipemakers’ offers for electric resistance welded (ERW) pipe made from S235-grade hot rolled coil were seen on Thursday mostly at $660-680/tonne fob Turkey theoretical weight, though higher and lower prices are also available from some producers.

Although there are top-up tonnage inquiries from the EU for the October quota term, demand is yet to be sufficient and producers’ order books are quite weak. Despite the weaker euro, European buyers are continuing to buy Turkish material due to numerous problems in their domestic market.

A few sales were heard to the EU and the UK this week.

Besides weak demand, Turkish pipe producers are seen suffering from financing problems as well as uncertainty following the US’ warning to Turkish companies working with sanctioned Russian companies, as Turkish pipe producers are major consumers of Russian HRC.

A Turkish pipe producer tells Kallanish: “We are trying to understand the situation, but it created great apprehension in the market. The US is an important market for Turkish pipes.”

In Turkey’s domestic market, stockists are seen offering discounts at around $30/t over offer prices to generate some cash amid weak demand, meanwhile.

Turkish HRC producers’ offers in the domestic market were seen at $640-660/t ex-works on Thursday, unchanged from last week, although discounts are available for the buyers that have previously bought at higher prices.

Burcak Alpman Turkey