Over the past two weeks, hollow section prices in Turkey's domestic and export markets have been kept stable, amid the more or less unchanged local hot rolled coil (HRC) and import scrap market prices. Meanwhile, even though Turkey's financial difficulties have persisted and continue to put pressure on both pipe producers' and purchasers' budgets, market participants report that end-user demand in the domestic market is slightly higher than in the summer months. However, the general mood remains pessimistic in light of continued inflation in Turkey and worldwide, as well due to the Turkish government's economic policy decisions.
“Due to our country's financial circumstances, it appears that we will restrict ourselves and our financial budgets until the New Year and maybe longer, or else it will be extremely difficult to maintain production. Similarly, the reason why demand is lower than normal is the continuing sense of uncertainty since banks do not give loans or we cannot forecast the exchange rates, and so consumers are extremely cautious,” one pipe producer told SteelOrbis.
Over the past weeks, domestic and export hollow section pricing has remained stable. Accordingly, the medium and smaller-sized producers are still offering at $750-800/mt ex-works in the local market, while according to reports, bigger mills are offering at around $700-730/mt ex-works.
Similarly, hollow section prices in the export market have also remained unchanged over the past couple of weeks, at $750-800/mt FOB. However, according to market participants, export business activities have failed to increase and are now at considerably low levels, despite suppliers being eager to offer discounts.