Considering the negative outlook in the domestic hot rolled coil (HRC) and flat steel markets in general, Turkish pipe producers have cut their prices over the past two weeks. According to industry players, amid the continuous absence of trade, most medium-sized and smaller pipe companies are cutting their capacity utilizations and selling at lower prices in order to reduce losses.
“Unfortunately, because of the ongoing economic challenges and the lack of demand, we hear a lot about company bankruptcies, and so many businesses are trying to reduce their capacity utilization to maintain sales levels that allow them to sustain their profit margins,” a market source told SteelOrbis.
Currently, domestic hollow section prices have decreased this week to $630-650/mt ex-works, down from $650-670/mt ex-works in the previous week.
On the export side, the situation remains slow, with the majority of official hollow section offers reported at $640-650/mt FOB, down from $650-680/mt FOB in the previous week. However, according to market sources, offers from larger pipe manufacturers are considerably lower, at approximately $620-630/mt FOB.