Domestic and export prices for hollow sections have moved further down in Turkey this week, mainly because suppliers are under pressure from downward shifts and pessimistic expectations in the hot rolled coil (HRC) and scrap segments. Additionally, market participants claim that while demand is slow particularly locally, it is still better than the export market.
Currently, domestic hollow section prices have decreased this week to $750-800/mt ex-works, down from $770-810/mt ex-works the previous week.
“Demand is marginally greater in the local market than it is in the export market, but overall market trends are unfavorable due to the scrap market and declining HRC prices. Along with the beginning of Ramadan, we also expect additional weaknesses in the market,” a market source told SteelOrbis.
On the export side, some weakening has occurred as trading has been sluggish due to limited customer demand and cheaper choices from other global exporters. As a result, official hollow section offers have been mostly recorded at $780-830/mt FOB, which is down from $790-830/mt FOB the previous week.