Galvanized sheet prices in Turkey to remain low in medium term

Assessing galvanized coil prices in Turkey, Turkish flat steel producer Borcelik's CEO Erkan Kafadar has said that, despite the additional zinc costs, galvanized sheet prices have been trending very close to cold rolled coil prices for a while. "Galvanized sheet prices will remain low for the next three to five years," Mr. Kafadar added.
 
At the SteelOrbis Market Talks Meeting held in Bursa in northwestern Turkey on May 6, nearly 150 representatives from 70 different companies including steel producers and companies from steel using sectors, particularly from the automotive industry, and from various segments of the steel supply chain gathered together and discussed the situation in the steel markets.
 
At the meeting, market players stated that thanks to new investments Turkey has reached a stage at which it can export hot rolled coil (HRC), from having been a net importer for many long years. Moreover, it was also stated that for some grades Turkey's HRC production has now surpassed its domestic needs. Thus, market operators have agreed that export opportunities should be availed of, in order to ease the supply pressure on the domestic market.
 
Unlike HRC, market players stated that Turkey is still unable to supply its cold rolled coil (CRC) needs from domestic sources and therefore it still relies on imports. In addition, as regards galvanized sheet prices, due to new investments which have been commissioned within a short period, these prices are relatively lower as compared to CRC prices.
 
It was also stated that, unlike the usual situation, this winter steel prices remained strong. Having said that producers are now seeking to increase their HRC prices, market players stated that they foresee the volatility in raw material prices will continue. However, steep raw material price hikes are not expected for the time being.