Even though demand in the local Turkish market has improved marginally and the hot rolled coil (HRC) market has remained stable, Turkish pipe producers have had no choice but to lower prices slightly due to the fall in the flat steel spot market and the weakening seen in the scrap market. In the meantime, despite attempts by pipe makers to give discounts on exports, there has been hardly any demand, which has caused the majority of producers to stick to unchanged prices.
“We have decreased prices somewhat owing to the lowering of spot prices, but we do not anticipate additional reductions because demand in the local market is slightly stronger but at limited levels. However, the general scenario remains unforeseeable and negative due to financial difficulties and the impending elections, which have the potential to weaken the currency,” a pipe maker commented to SteelOrbis.
Over the past week, domestic hollow section prices have fallen to $790-830/mt ex-works, from $800-850/mt ex-works. However, according to sources, a few pipe makers are offering the previous higher levels at approximately $850/mt ex-works, which is not feasible in the present market environment.
As a gloomy mood has persisted in the export market, the majority of pipe producers have maintained their previous offers, in the range of $800-850/mt FOB.