During the past two weeks, the hollow section market in Turkey witnessed a downward trend as end-user demand in both domestic and export markets has failed to increase, resulting in price reductions. Furthermore, with the depressing sentiments in the hot rolled coil market (HRC) and the upcoming holiday, the general expectations continue to be negative and many expect new price decreases. Though the majority of pipe makers believe that this market situation is extremely difficult, some pipe makers have found hope in the scrap market's recent improvement, which may help keep prices stable in the short term.
“Since the market remains bleak, we have had no choice but to reduce our offers. However, given the impending holiday and the summer season, I think this reduction will continue,” a pipe producer told SteelOrbis
Over the past weeks, domestic workable hollow section prices have fallen to around $690-730/mt ex-works, from $700-750/mt ex-works.
Similar to the domestic market, there has been a decline in the export segment because of poor sentiments. As a result, pipe producers have reduced export prices to $730-750/mt, down $750-800/mt FOB from previous weeks. However, according to sources, larger Turkish pipe makers are giving substantially lower prices for hollow sections for September shipment, at about $680-690/mt FOB.