This week, Turkish welded pipe suppliers have provided sizable discounts for the hollow sections with 2 mm wall thickness, for both domestic and foreign customers. The low demand and the aggressive price policy of some suppliers, who have been trying to destock, have impacted the offer levels in the local market. As regards exports, the business activity has been generally slow due to the approaching holiday in the EU and, according to some sources, the increased competition with China. In addition, the sizable price decrease seen in the hot-rolled coil (HRC) market over the week is another reason for the weaker hollow section prices, though not the main one.
In the local market, most of the official hollow section offers have been reported for ready material or for ongoing production at the levels of $1,250-1,280/mt ex-works and up to $1,300/mt ex-works in some cases. Last week, the prices were mainly standing at $1,300-1,330/mt ex-works. However, despite the provided discounts, even lower levels are said to be achievable in the market, such as $1,200-1,220/mt ex-works. Traders are trying to minimize their stocks and are offering big discounts in order to boost sales and the mills have had to follow. “It is a buyers’ market as the demand is not there and today the producers are not the ones leading the pricing, but stockists are,” a pipe-maker told SteelOrbis.
In the export segment, offers for pipes from medium-sized suppliers decreased by $50-60/mt over the past week to $1,250-1,270/mt FOB for June shipments. However, large mills have reportedly been ready to sell at $1,220/mt FOB and mainly even lower than that, for shipments in late May.
By the end of the week, the local HRC prices in Turkey have decreased to $1,200-1,250/mt ex-works base from $1,250-1,350/mt ex-works in early April, basically coming close to the hollow section offers. “Pipe will fall even more soon I believe and HRC might not have a chance to avoid that either. The prices already do not match,” a mill said.