Prices for Turkish welded pipes rose by $15 per tonne over the same period

The global pipe market is seeing mixed trends, driven by the specific characteristics of pipe products. At the end of September, prices for welded pipes in Turkey, intended for construction, rose by $15/t, whilst quotations for oil and gas OCTG pipes in the US increased by 17% month-on-month to $3,031/t. High oil prices are stimulating investment in drilling and, as a result, are driving up prices for oil and gas pipes.

USA

Average prices for OCTG pipes on North America FOB terms rose by 17% month-on-month in September, or by $441, to $3,031 per tonne. Two periods of sharp price rises were observed during the month: at the start of the month, prices jumped by $248 per tonne, and at the end of the month, by a further $138 per tonne.

The market is experiencing a shortage of raw materials (blanks, carbon steel) and rising costs, whilst geopolitical instability in the Middle East and the depletion of US oil reserves are also having an impact. The US market is characterised by frenzied demand for American-made products: buyers, keen to avoid delays and logistical risks, are prepared to pay a premium. Limited supply of seamless pipes has led to a rise in the popularity of welded pipes as an alternative. Experts expect prices in the US to rise further as work is planned for 2027.

The trend in the number of active drilling rigs in the US also confirms this trend and points to a rise in investment in drilling. According to Baker Hughes, the number of oil and gas drilling rigs in the US – an early indicator of future production – stood at 598 at the end of September, which is 49 rigs more than in the same period of 2025.

The expected price trends also look favourable for the oil and gas sector. The US Energy Information Administration (EIA) forecasts that this year the price of Brent crude will average $86.81 per barrel (previous forecast: $82 per barrel), whilst the price of WTI crude will average $80.88 per barrel (previously: $76 per barrel).

Turkey

According to Kallanish, prices for welded pipes in Turkey rose by $15 in September, to $635/t (FOB Turkey). Prices rose throughout most of September, reaching $660/t, but fell by $25/t towards the end of the period.

In late August–early September, producers raised export prices for electric resistance welded (ERW) pipes (grade S235) from $605–630/t to $630–650/t FOB. However, by early October, prices had stabilised at $620–650/t FOB, despite the rise in the cost of raw materials — hot-rolled coil (HRC), which is the main semi-finished product for welded pipes, the cost of which rose from $585–595/t in August to $630–650/t EXW in October. Manufacturers were unable to pass these costs on to buyers due to weak market conditions.

The rise in the price of HRC was driven by a lack of supplies from Russia, a reduction in imports, logistical disruptions caused by military action, and the high cost of Chinese steel. Furthermore, the US has confirmed that countervailing duties on Turkish large-diameter pipes will remain in place (3.34% for HDM Çelik in 2024).

Demand in key markets (the EU and the UK) remained low throughout the month. Buyers and mills have focused on utilising their October EU quotas. The Carbon Border Adjustment Mechanism (CBAM) and the reduction in quotas for steel imports into the EU since July are holding back buyer activity. Short-term expectations are moderately positive, provided the current geopolitical factors remain unchanged.

Overall, the Turkish construction market is characterised by weak demand. Taking seasonal adjustments into account, the economic confidence index for Turkey’s construction sector, calculated by the Turkish Statistical Institute (TUIK), fell again in September by 0.2 points compared with the previous month (in August, it fell by 0.4 points) to stand at 83.0. An index value below 100 indicates that pessimistic sentiment prevails.

It should be noted that, according to August figures, prices for welded pipes in Turkey intended for construction purposes fell by 6% month-on-month due to a seasonal downturn, whilst prices for OCTG pipes in the US rose by almost 11% month-on-month to $2,838 per tonne at the start of September.