This week's hollow section (HS) prices in Turkey have remained unchanged despite weaker market conditions. Domestic hot-rolled coil (HRC) prices continue to drop, the scrap market is heading downwards, while the currency fluctuations and inflation are impacting overall business activity in Turkey. For these reasons, traders are waiting to see what happens since bad scenarios such as falling pricing, rising costs, and fluctuating currency rates are causing both pipe sellers and buyers to reconsider their activities and spend or invest their money wisely rather than taking risks.
“For weeks, the situation has been deteriorating, and this trend signals that worse days are coming. Our difficulties, such as the global economic crisis, Turkey's economic situation, and inflation, continue. On the other hand, demand may not be as good as in the past, but this does not mean that there is no demand at all. In fact, numerous projects and constructions have begun. The main reason we cannot make deals is that these buyers want substantially lower pricing, which makes competition among dealers so aggressive,” a trader told SteelOrbis.
Currently, prices in the local hollow section market are at $800-900/mt ex-works, in line with the end of last week. The most recent price from a large mill has been reported at $800-810/mt ex-works, while many medium-sized suppliers have quoted at $860-900/mt ex-works. Some small mills, on the other hand, have been attempting to offer $1,070/mt ex-works, which is not considered workable in the present market conditions.
In the export market, HS prices are about $900-950/mt FOB, which is the same as last Friday, with some mills attempting to sell at around $1,150/mt FOB, but the top end of the range is barely considered workable.