Positive developments in the scrap market have encouraged hot rolled coil (HRC) prices in Turkey to climb slowly, which has pushed pipe producers to adjust their prices upwards. Another impact of the price hike was the rise in demand, which was rekindled this week in both local and international markets. Unfortunately, the negative impact of persisting financial challenges globally and in Turkey continues to pose a challenge to purchasers.
“We have raised hollow section prices, although we do not expect this to last long owing to economic and financial issues, because the cash crisis persists as a result of rising expenditures and it is impossible to obtain a loan from a bank owing to interest rates. In other words, this demand will never steadily improve unless the financial and economic conditions change and both pipe manufacturers and customers feel more at ease.” a pipe-maker told SteelOrbis
Turkey's local workable hollow section prices are currently at about $725-800/mt ex-works, up from $700-750/mt ex-works the previous week. Likewise, due to growing demand, achievable export prices have climbed by $15-50/mt this week to $765-850/mt FOB since last Friday.