The Turkish hollow section market has seen a moderate downward adjustment this week, as limited sales in both the domestic and export segments have enabled buyers to push for lower levels. Softer local HRC and import scrap prices have continued to weaken market sentiment, while financial constraints and the summer slowdown have further restricted purchasing activity. Although pipe producers remain reluctant to make aggressive price cuts, the lack of fresh business has increased their willingness to negotiate, particularly for firm orders.
“Sales are likely to remain very limited throughout the summer. We may see some improvement in September, but given the current domestic market conditions and the new restrictions affecting exports, even that remains difficult to predict,” a Turkish pipe producer told SteelOrbis.
In the domestic market, hollow section offers are now heard at $670-680/mt ex-works, compared to $670-690/mt ex-works last week. Sources say lower workable levels of around $660-665/mt ex-works may also be available for serious buyers, depending on order volume and payment terms.
In the export segment, Turkish hollow section offers have decreased to $660-670/mt FOB, from $670-680/mt FOB last week. With overseas demand still limited, some pipe producers remain open to offering additional discounts for serious buyers and larger-volume orders. Export sentiment has also been affected by the new EU quota regime, under which Turkey’s annual country-specific quota for hollow sections has been set at around 239,399 mt, equivalent to approximately 59,850 mt per quarter. The quota for the current period was exhausted rapidly, with around 91,700 mt already awaiting customs clearance, increasing concerns over future export sales.
“The new quota situation will make exports more difficult, but it is still too early to assess the full impact. We will probably have a clearer picture in September,” a Turkish pipe producer told SteelOrbis.
