Hollow section prices have been more or less stable in Turkey in both the local and export segments, despite the downturn seen recently in flats prices. According to medium-sized and smaller pipe makers, the size of the price drop for hot rolled coil (HRC) has not been large enough to put pressure on pipe offers and, moreover, providing discounts for pipes now would jeopardize producers’ profits since their feedstocks had been booked earlier at much higher prices. However, some large pipe producers, who traditionally operate with lower costs, have decided to become aggressive in their pricing, thus putting pressure on the segment overall.
Most of the small and medium pipe-makers have maintained their domestic hollow section prices at $750-800/mt ex-works from the previous week. However, according to sources, the larger pipe producers have offered at around $720-730/mt ex-works.
“Major producers are disturbing the market balance with low prices, but many sellers are unable to sell at these prices since pipes have a cost and economic troubles continue to have a significant impact on buying and selling,” a medium-sized pipe maker told SteelOrbis.
In the export market, a majority of pipe producers are offering the same prices as last week at $780-830/mt FOB.