Over the past week, the majority of Turkish pipe makers have chosen to reduce their offers in response to softer hot rolled coil prices and declining demand levels. Furthermore, with scrap prices and Chinese offers declining further, pipe producers' expectations have become negative again, with further price declines anticipated in the coming weeks.
"Unfortunately, pessimism has returned and everyone has begun to decrease prices, and it appears that this will continue because no other good signals have been noticed in the Turkish domestic market or around the world,” one pipe producer told SteelOrbis.
As a result, feasible domestic prices for hollow sections have dropped to $700-730/mt ex-works, from $700-750/mt ex-works in the previous weeks. However, in order to attract customers' attention, some pipe producers have made further reductions, offering at around $690/mt ex-works.
A similar weakening has been observed in the export segment, with the majority of pipe makers quoting prices at $700-720/mt FOB, compared to $700-730/mt FOB last week. Meanwhile, according to sources, one of the larger pipe makers has provided hollow section offers at $650/mt FOB, which appears to be an extremely low price given the current market situation.