Domestic and export prices for hollow sections have risen further in Turkey this week, as optimism from hot rolled coil (HRC) and scrap pricing has pushed the market higher. However, industry participants are cautious about this rise, given the persistent weak demand in both the domestic and export markets. In addition, the approaching holiday and ongoing financial difficulties make the picture even more bleak and raise doubts about how these prices can be sustained.
Currently, domestic hollow section prices have increased this week to $640-660/mt ex-works, up from $620-640/mt ex-works in the previous week.
“Although there have been rises in Turkish flats prices, the pipe market's demand is still quite low and not supportive of increased levels. Selling at lower than average prices is the only way to generate demand, but nobody wants to do so as it would result in extremely low or even no profits,” a market source told SteelOrbis.
On the export side, despite the overall weakness in trade due to limited customer demand, most official hollow section offers have been reported at $630-650/mt FOB, up from $620-635/mt FOB last week.
