Following the price drop seen in previous weeks, Turkish hollow section producers have been forced to give more discounts because of persistent poor demand and the gloomy atmosphere in the flats market. Furthermore, currency swings as a result of this weekend's elections have caused business activities to come to a near halt amid concerns persisting about the future economic and financial situation.
Currently, offers in the local hollow section market in Turkey are at $840-880/mt ex-works, down about $20/mt from the previous week, while some of the pipe makers still trying at higher levels around $900/mt ex-works, which are currently not workable in this market situation.
“The local market has been almost silent this week as everyone is focused on the elections, while the export market has been quite dismal mainly because our pricing is too costly for customers.” a trader told SteelOrbis.
Likewise, the export side has remained pessimistic since orders for Turkish pipes have decreased. As a result, this week's hollow section export prices have fallen to $850-900/mt FOB, while the previous week offers were at $890-950/mt FOB.