Along with the ongoing global and Turkish economic challenges, the price increase for the hot-rolled coils (HRC), triggered by higher energy tariffs, has turned out to be short-lived and the mills were forced to provide discounts due to poor demand. Such a trend has been putting pressure on the pipe market, but the producers have managed to maintain the offer levels for now, while knowing that there is no demand growth to support the prices of hollow sections (HS) in Turkey.
“Flat steel prices are dropping and putting pressure on the HS. Furthermore, since demand is our most crucial component and we are not seeing the desired rise in both the local and abroad markets, therefore we are aware that a price reduction is unavoidable in the near future,” a pipe-maker notified SteelOrbis.
Currently in the local HS market prices are at $700-750/mt ex-works. Additionally, medium-sized manufacturers are trying to sell at around $700-720/mt ex-works while the most recent prices from the bigger mills were given at $720-750/mt ex-works. The offer level for exports remains the same from last week at $750-800/mt FOB; owing to the poor demand, some mills are more likely to grant discounts and offer about $730-750/mt FOB.