Since a weakening in hot rolled coil (HRC) and scrap prices has been observed in the market, pipe suppliers in Turkey have decided to cut their prices. On top of that, slower trade both domestically and internationally, as well as internal financial issues, have also contributed to the depressed market atmosphere. However, the pipe producers believe that additional reductions will be difficult given increased costs and the impending local elections in Turkey, which will contribute to a quiet market in the approaching month.
“Customers are making fewer and safer purchases due to the country's uncertain and unreliable situation caused by financial difficulties and higher costs. We expect that the decline will not occur for a time, but, if demand persists at such low levels, a decrease will be unavoidable, particularly after the elections,” a pipe producer commented to SteelOrbis
As a result, domestic hollow section prices have decreased this week to $770-810/mt ex-works, down from $790-830/mt ex-works the previous week. However, a few pipe producers are providing more discounts and are offering $750/mt ex-works to attract buyers' attention.
Similar trends have been seen in the export market, where most pipe producers have cut prices to $790-830/mt FOB, from $800-850/mt FOB last week.