Turkish hollow section prices have continued to rise this week, with the upward movement accelerating on the back of firmer HRC quotations, while continued strength of scrap prices has provided additional support for the overall market trend. The latest increase in input costs has encouraged larger pipe producers to lift their quotations further, resulting in a significant rise across the market. While the firmer price trend has generated some additional buying interest, demand has not improved enough to match the pace of the increases. This has become more visible in the domestic market, where purchasing activity has started to lose momentum as quotations move higher, while buyers remain cautious about committing to larger volumes. Export demand is even more limited, with activity continuing at a relatively slow pace.
Against this backdrop, one of the larger pipe producers was heard at around $670-675/mt ex-works at the beginning of the week, before revising its quotations to approximately $680-690/mt ex-works today, September 10, following the latest increase in HRC prices. The move has encouraged other suppliers to maintain a similarly firm stance, bringing the general domestic market range to around $680-700/mt ex-works, compared with $645-660/mt ex-works previously. Some pipe makers have even announced quotations close to $710/mt ex-works. However, despite the substantial increase in offer levels, sources indicate that actual buying at the upper end remains limited, as demand has so far failed to strengthen in line with the latest price movement.
A similar upward adjustment has been seen in the export market, where Turkish hollow section offers are now generally heard at around $675-690/mt FOB, up from $640-655/mt FOB previously. Nevertheless, overseas demand remains softer than domestic demand, and market sources report only limited inquiries and relatively few bookings at the current levels.
