In Turkey, hollow section (HS) prices have dropped by $70-90/mt in the last week. The market outlook is gloomy and puzzling because pipe prices are unable to settle into a normal range and buyers are in standby mode since the drop is predicted to continue. As a matter of fact, some hollow section suppliers have opted to reduce their offerings in order to maintain business operations, whilst others have preferred to offer at higher levels for the moment, which are no longer viable.
“We expected some stability in the pipe section and a rise in demand due to the increase in demand and the price of scrap, but it was not as we expected, and there was no increase in demand or pricing. In other words, our main difficulty right now is a lack of demand, and so we had to decrease our pricing in order to stay in business.” a pipe-maker remarked to Steelorbis.
Workable prices in the local hollow section market are presently at around $700-770/mt ex-works, down about $70-90/mt over the past week. The most recent offer from a large mill was reported to be $700-750/mt ex-works, while several medium-sized suppliers quoted $750-770/mt ex-works. Some small mills, on the other hand, have been attempting to offer at $880-950/mt ex-works, which is deemed not viable under the prevailing circumstances.
On the other hand, hollow section prices in the export market are at about $750-850/mt FOB, down from approximately $880-900/mt FOB last Friday, despite some other mills seeking to sell at around $930-1,000/mt FOB, even though the top end of the range is barely considered to be viable.