This week, the prices of hollow sections in Turkey have again moved up due to the ongoing increases in feedstock offer levels, which are supported by costlier energy expenses. Unfortunately, owing to the downturn in the construction industry and the reduction in project activity, a lack of demand is still observed. As a result, many pipe traders are aware that the current prices will not last very long and will eventually retreat, and so they do not hesitate to provide discounts to existing buyers.
“Our sales were already low since the construction industry, where we generate the majority of our revenues, has seen a significant decline in projects, and, as winter approaches, they are only going to decrease. Furthermore, in the export segment, we can observe how much global inflation affects other countries' purchasing power. As a result, we are struggling to remain profitable in both the domestic and worldwide markets, which is why we have chosen to cut our pipe section capacity as much as feasible,” a pipe-maker indicated to SteelOrbis.
Domestic hollow section prices have risen by $10/mt to $700-750/mt ex-works. In contrast to some of medium-sized manufacturers' quotes of about $700-730/mt ex-works, the most recent price from one of the bigger mills was given at $730-750/mt ex-works. Additionally, the offer level for exports climbed from $700-780/mt FOB the previous week to $750-800/mt FOB currently. However, due to weak demand, certain mills are inclined to provide discounts and offer around $730-750/mt FOB.