This week, the prices for hollow sections (HS) have stabilized in Turkey despite the negative factors which include economic instability, currency fluctuations and the stagnating local construction sector. Pipe producers have been trying to avoid large discounts, taking into account that no sizeable further drops were seen in the hot rolled coil market. Some sources believe the prices are already at the bottom and that the market is getting ready to rebound.
“Sales of Turkish hollow section, which are largely utilized in the construction industry, have ceased owing to a lack of demand caused by a lack of construction projects. Due to this situation, we are left with the goods and we only sell in small tonnages, but this is not sufficient for us.” a pipe maker told SteelOrbis.
Most mills in the domestic market are apparently trading hollow sections at around $850-900/mt ex-works, which is the same as last week's pricing. Hollow section prices in the export segment, on the other hand, are at approximately $900-950/mt FOB, which is the same as last Friday.
“The Turkish hollow section market is quite tense right now, and the country's economic position is unpleasant, and so on our (pipe) buyers' side business activities have slowed, and that is why they do not expect prices to fall or look for discounts. They simply consider their personal economic circumstances and remain silent.” a pipe maker told SteelOrbis.