During the past week, average hollow section prices in the Turkish domestic market have seen a downward trend, since end-user demand has failed to improve even though suppliers were willing to give discounts. Moreover, although there is a certain stabilization in the hot rolled coil market, the general expectations of pipe buyers regarding flats are still negative and many expect there will be new price decreases. However, improving scrap prices in the import segment in Turkey may reverse the situation in the short run.
Local hollow section prices in Turkey have dropped by $40/mt over the past week to $680-700/mt ex-works from medium-sized producers. Meanwhile, according to sources, the most recent offer from a large mill stood at $640/mt ex-works, which is quite aggressive.
“Demand [for hollow sections] is poor in the same way. Also, consumers who are contemplating purchases are monitoring prices in expectation of a reduction in HRC prices,” one pipe producer told SteelOrbis.
At the same time, some pipe producers are attempting to sell for roughly $720/mt ex-works, but this is not feasible in the present market conditions.
“We need to sell at a profit as we are unlikely to sell at the same prices as the large manufacturers who maintain such cheap pricing,” a pipe maker stated.
Similarly, export offer levels have dropped by $50/mt from the previous week to $700-740/mt FOB.