Even though hot rolled coil (HRC) prices have started to soften, Turkish pipe producers have chosen to give discounts to serious buyers while maintaining their offers unchanged from last week. Furthermore, market participants believe that, if HRC prices continue to decrease, pipe prices will begin to decline as well. Meanwhile, despite the poor performance in the export market, demand in the domestic market has remained acceptable, which allows pipe makers to sustain keep their prices in the current range.
“We are hearing about price reductions in the HRC segment. If the expectations materialize and the softening continues, we will undoubtedly lower prices. However, the overall scenario remains unfavorable since the country's financial problems continue, meaning that business will be limited,” a trader told SteelOrbis.
Over the past week, prices in the local hollow section market have remained at $750-800/mt ex-works. However, several pipe manufacturers have provided $10-20/mt reductions, corresponding to roughly $730-740/mt ex-works. In the meanwhile, offers from larger mills are reported at roughly $690-700/mt ex-works.
On the other hand, throughout the past week, hollow prices for exports have remained stable at around $750-800/mt FOB, with not much interest from abroad.