During the past two weeks, hollow section prices in Turkey's domestic and export markets have fallen further, since end-user demand has failed to improve even though suppliers were willing to give discounts. Moreover, with the continuous decrease in the hot rolled coil market (HRC) and domestic financial difficulties, the general expectations of pipe buyers are still negative and many expect there will be new price decreases. However, slightly improving scrap prices in the import segment in Turkey may reverse the situation in the short term.
“Demand for pipes remains poor. Also, consumers who are contemplating purchases are monitoring prices because of expectations of another reduction in HRC prices,” one pipe producer told SteelOrbis.
Local hollow section prices in Turkey have dropped by $35-40/mt over the past week to $800-845/mt ex-works from medium-sized producers. Meanwhile, according to sources, the most recent offer from a large mill stood at $750-770/mt ex-works.
“Even with bigger discounts, the export market is in a more dire state than the local market because no one is interested in our offerings. Our prices are still expensive in comparison to those of other suppliers worldwide.” a pipe producer told SteelOrbis.
Similarly, export offer levels have dropped by $35-40/mt from the previous week to $815-860/mt FOB.