Following a drop in hot rolled coil (HRC) prices, the weakening in the scrap market and a lack of demand have impacted Turkish pipe producers, eventually causing decreases in their prices. In addition, the beginning of Ramadan and the upcoming elections have raised doubts in the market and also caused trading to slow down.
“Uncertainty exists in the domestic market. HRC producers have reduced prices but keep trying to sustain prices in the upper range and not offer discounts. Even so, a drop in demand and in HRC prices has caused pipe prices to fall. While exports are very slow compared to domestic business activities, I believe our prices are higher than other international providers.” a pipe producer said to SteelOrbis.
Over past weeks, domestic workable hollow section prices have fallen to around $900-950/mt ex-works, from $950-1,000/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 $930-950/mt down $950-980/mt FOB from previous weeks.