Another reduction has been observed in the Turkish pipe market mainly due to recent price decreases in the domestic hot rolled coil (HRC) and scrap segments. As a result, pipe producers have had no choice but to provide further discounts since low demand is also another effect that still limits their business activities. In addition, persistent economic and financial challenges continue to be critical, contributing to the bleak outlook.
“The situation is still the same. There is very little business activity in the pipe segment. Prices are falling, but demand is extremely low, and, given the current market conditions, it appears that more declines are on the way,” a pipe producer told SteelOrbis
Prices in the local hollow section market in Turkey are at $750-800/mt ex-works, down around $30/mt week on week. Meanwhile, market participants report that prices from bigger pipe producers range at $700-730/mt ex-works from $730-740/mt ex-works earlier.
“Yes, there are cheaper prices in the market but we are now selling from ready stocks. Of course, if there is demand and orders for September, we will give prices equivalent to the big producers' prices,” a medium-size pipe producer told SteelOrbis.
Nevertheless, hollow section pricing in the export market has stayed unchanged, equal to domestic market prices, at about $750-800/mt FOB.