Considering the recent softness in the hot rolled coil (HRC) market, Turkish pipe producers have decided to bring down their pricing correspondingly. Furthermore, according to industry participants, demand in the domestic market is now higher than in the export market, though there are certain issues in the domestic market such as persistent financial difficulties that cause business activity to be considerably lower than planned.
“Prices have fallen, but we do not anticipate them decreasing further. Demand is only doing well in the domestic market but it is still weak, and we believe that the contraction in demand will last until the election since our economic circumstances and cash constraints are exhausting everybody,” a pipe maker told SteelOrbis.
As a result, prices in the local hollow section market have dropped to $720-750/mt ex-works, from $750-800/mt ex-works the week before. Meanwhile, according to sources, a few smaller pipe suppliers have attempted to offer at roughly $770/mt ex-works, which is unreasonable in the current circumstances.
Conversely, market participants claim that sentiments are negative and business activity remains extremely low in the export sector. Even if pipe makers are attempting to provide offers close to those in the local market and are willing to give discounts, there has not been much interest. Over the past week, hollow section export market prices have declined by $20-30/mt to $730-770/mt FOB. In addition, according to sources, the larger pipe producers are currently offering at roughly $690/mt FOB.