The first week of May has been silent in the Turkish hollow sections (HS) market due to the holiday period. Naturally, business activity has declined and prices have been under pressure. However, most suppliers have kept their offers stable as discounts would not generate active sales. In the meantime, some producers who were offering at high levels last week have now decided to bring their offers to more reasonable levels.
In the domestic market, most medium-sized producers are reportedly standing at $1,200/mt ex-works and maybe slightly above, reluctant to give huge discounts. In the meantime, offers at $1,250/mt ex-works are said to be off the table now. Large producers, according to sources, are selling at close to $1,100/mt ex-works, which was heard only in specific cases before the holiday and seems to be more widespread nowadays. As for exports, the offer levels are indicative and remain at $1,200-1,250/mt FOB, while the upper end of the range is hardly considered workable.
The market is expected to gain more clarity in terms of price after the holiday. One factor is that the hot-rolled coil (HRC) prices in Turkey dropped by at least $50/mt this week and are set to weaken further. However, some sources believe that, if Chinese cargoes are delayed, the lack of feedstock supply will support pipe prices. "This week, the market was stagnant due to both the closure of workplaces due to the holiday in Turkey and the lack of demand. However, we will start understanding more about the market next week. Our expectation is that HRC orders in China will be delayed, and HRC pricing will not fall further, allowing the hollow section market to improve,” a producer told SteelOrbis. However, most market players have not been reporting any significant problems with ex-China cargoes.