Even though there were still unfavorable conditions, such as economic and financial challenges, hot roll coil (HRC) prices in Turkey, which have risen owing to the increase in the scrap market in the past two weeks, have eventually exerted a strong impact on the domestic pipe market. Nevertheless, despite this week's hike in pipe prices, no significant improvement has been seen in the ongoing lack of demand.
Currently, the workable domestic pricing for hollow sections stands at $730-750/mt ex-warehouse, up from $680-700/mt ex-warehouse in previous weeks.
Meanwhile, a few pipe makers are seeking to sell at up to $800-850/mt ex-warehouse, which is not realistic in the present market conditions.
“We have decided to sell our hollow sections above the market price since the demand from the construction industry is insufficient for us to make a profit, and so it makes more sense for us to maintain levels with which we can make a profit rather than making a loss,” one pipe producer told SteelOrbis.
Likewise, the export market has also strengthened during this period, with price levels rising by $50-$60/mt from previous weeks to $760-790/mt FOB.