Given the softening of hot rolled coil (HRC) prices and slackened trade, Turkish pipe producers have had no alternative but to reduce offer prices. Although some gains have been noticed in the scrap market and in Chinese HRC pricing, the majority of industry players believe that low demand will mean that any increases will be temporary.
“Most people are either buying carefully or delaying purchases until next year as the end of the year draws near and everyone is assessing their financial standing. Even if there are some increases in flat steel prices due to scrap and China, it is questionable how effective they will be given the limited demand,” one pipe producer commented to SteelOrbis.
Offers in Turkey in the local hollow section market have decreased to $640-650/mt ex-works, down about $10-20/mt from the previous week, while, according to market players, offers from larger pipe makers are at around $620/mt ex-works.
Similarly, export prices have fallen and now stand equivalent to domestic pricing, at $640-650/mt FOB, compared to $640-660/mt FOB offers last week.