Turkish hollow section (HS) producers have avoided making price cuts this week, despite the weaker hot rolled coil (HRC) offers seen in the market. The main reason is the rebound in the import scrap segment, which has made market players think the same trend will be seen in finished steel products as well. However, demand for hollow sections in Turkey and abroad is still weak, while economic and financial factors remain an issue.
“This increase in scrap does not imply that everything will return to normal, but it may have an impact on the pipe market. As a result, the rising prices and demand for scrap, and the holiday in Turkey may keep prices stable. We may see the result in additional demand after the holiday,” a pipe maker told SteelOrbis.
Domestic and export hollow section pricing is in line with last week’s levels. The large and medium-sized producers are still offering at $770–860/mt ex-works in the local market, while some smaller mills are offering at $975/mt ex-works, which is not thought to be reasonable given the state of the market. Hollow section prices in the export market have also remained unchanged since last Friday, at $880-900/mt FOB.