Local Turkish hollow sections (HS) prices have risen as a result of an increase in demand and also in pricing in the retail flats market, while traders indicate that demand for pipes is presently more or less nonexistent in both domestic and foreign markets. Furthermore, negative factors, especially the global economic crisis, inflation, and the lack of demand, suggest that this current upward trend will not be sustained.
"We just wanted to see some of the local demand for pipes after the Eid holiday, but, regrettably, the situation did not develop in the direction we desired. Frankly, this trend of pipe prices forces us to think about not selling them anymore or selling them especially in response to demand,” a source indicated to SteelOrbis.
According to reports, the majority of medium-sized mills are selling their products at $750-800/mt ex-works. In the meantime, the lower range before the Eid holiday at $700/mt ex-works and below $750/mt ex-works is said to be off the table now. While some smaller mills are attempting to sell at about $830-950/mt ex-works, this is not sustainable in this particular market. As regards exports, the offer level has risen to $800-850/mt FOB from $750-850/mt FOB, while the upper end of the range is considered to be hardly workable.