Given the continuing unfavorable outlook, as well as the lower prices in the hot rolled coil and scrap segments, Turkish pipe producers have had not much choice but to reduce their offer prices compared to previous weeks. Furthermore, the ongoing slack trade, which is projected to worsen in both the domestic and export segments with the impending holidays, is expected to exert additional negative pressure. Nonetheless, some pipe makers believe that, since the scrap market is at its lowest point and with holidays approaching, prices may drop even more, but not much, and then may remain stable until September.
“The anticipation of a reduction remains, but demand is not improving in any manner, so it may fall a little more in the coming weeks, but, since scrap appears to be at its lowest point, we will try to keep prices relatively stable until the beginning of autumn,” a pipe maker told SteelOrbis
As a result, offers in in the local Turkish hollow section market have decreased to $640-660/mt ex-works, down about $10/mt from the previous week, while, according to sources, offers from larger pipe makers are at around $620/mt ex-works.
Similarly, export prices have fallen and are now early equivalent to domestic prices, at $640-650/mt FOB, compared to $640-660/mt FOB offers last week.
