Since the anticipated rise in business activity with the start of the new month after the holiday failed to occur, Turkish pipe makers have decided to reduce the price of hollow sections in both local and export markets. The current stability, despite the forecast of a downward trend in the coming days of the hot rolled coil (HRC) market, and the decline in the scrap markets, has kept the outlook of pipe makers negative, with many expecting greater price reductions.
“We expected purchases that were made before the holiday to arrive after the holiday period ended, but demand has been lower than predicted and so prices have been reduced. Both producers and purchasers are hesitating to do any business due to financial difficulties and, as long as these problems persist, it seems difficult to change anything,” one pipe producer commented to SteelOrbis.
Offers in Turkey in the local hollow section market have decreased to $780-830/mt ex-works, down about $20-40/mt from the previous week, while, according to market players, offers from larger pipe makers are at around $730-740/mt ex-works. Likewise, export prices have also decreased to $750-800/mt FOB, while offers in the previous week were at $830-860/mt FOB.