Even though trade in the domestic hollow section market is still limited and export trade is still relatively weaker compared to domestic activity, Turkish pipe producers have had no choice but to continue the upward price trend and increase their offers, mainly due to the positive trends in the scrap and hot rolled coil (HRC) segments.
Over the past weeks, domestic hollow section prices have climbed to $770-850/mt ex-works, up from $750-800/mt ex-works.
“Because of the market's upward trend, prices have risen and have been expected to rise further, so buyers in the domestic market are purchasing but in small quantities. However, exports are problematic. With the prices demanded by consumers, we will be losing money and so trade is difficult,” a pipe producer said to SteelOrbis
On the other hand, the outlook for the export market has remained gloomy due to the very sluggish trade. However, with scrap and HRC prices going up, pipe makers have had no other option except to increase their offer prices. According to reports, current offers have increased by $50/mt from the previous week to $800-850/mt FOB.