Another price fall has occurred in the local Turkish hollow section (HS) market in past weeks, caused by the ongoing low demand and the decreasing prices for hot rolled coils (HRC). Because of the unpredictable mood and sluggish demand in the local and export markets, market players see little optimism and prices have not yet stabilized in a normal range.
As a result of the negative pressure, the majority of pipe producers have continued to reduce offers. Domestic workable hollow section prices are now at approximately $660-680/mt ex-works, down from $690-730/mt ex-works previously.
“Demand is weak both in the local and export markets, and the continual decline in HRC pushes us to reduce prices. Regardless of how much scrap prices have improved, the most important point is that there is no business,” a medium-sized pipe producer told SteelOrbis.
On the export side, most official HS offers are at $670-700/mt FOB from small and medium-sized mills, down from $730-750/mt in the previous week. Large producers, according to sources, are selling at roughly $650/mt FOB.