The business conditions in Turkey’s hollow section market have weakened, following a spike of activity seen last week. The main reason is the downturn in the hot rolled coil (HRC) segment, which naturally affects spot demand for pipe products. In addition, overall market demand for hollow sections in Turkey remains insufficient as end-users are under continuous pressure from unfavourable economic and financial factors. Particularly, according to sources, regardless of how much hollow section prices have been discounted, economic inflation rates and the volatile currency are deterring local consumers from purchasing more than they actually require.
Turkey’s local hollow section prices have decreased by $40-45/mt to $705-760/mt ex-works with the lower end being offered by large suppliers. Some small sellers are still targeting $790-810/mt ex-works, saying they cannot afford to sell at levels lower than that. However, these offers are considered by market players to be overpriced. As regards exports, the offer levels have dropped by $30-45/mt to $755-820/mt FOB.