Roof cladding industry to be effected by price increases
Significant increase, higher than expected, in prices of flat products which are the input of materials used in roof cladding, had a wet blanket effect in the roof cladding industry after a good 2002 season. Flat rolled prices in Turkey kept rising in the first quarter, in parallel to the increase observed worldwide, thus galvanized products seen a price of about $50/mt. Consequently, producers using galvanized materials in color coated sheet production and sandwich panel producers using color coated sheets had to reflect this price increase to their products on USD basis. This effected investors buying roof cladding products as these USD based price increases were added to their investment costs. As long product prices showed an increase together with flats, it can be said that many investment projects have been adjourned. In year 2002, 6 milllion m2 capacity of the current 11 million m2 capacity was used in Turkey and it was considered as a good year. 2003 was expected to be much better than last year, however because color coated sheet prices rapidly increased in 2003 to $750/mt levels, whereas prices were at the range of $500-550/mt last year, this was reflected to sandwich panel prices, leaving investors in a though situation. As these products constitute the last item of investment costs, mostly investors intend to save money from roof cladding expenses. Inspite of the price increases and possibility of war in Middle East, it is expected that at least last year's figures will be reached in 2003, according to market predictions. Currently prices of sandwich panels with color coated steel are around $11-12/m2 levels. Roof cladding industry, focusing on foreign trade as well, makes exports generally via roadway to closer neighbor countries such as Ukrania, Azerbaijan, Bulgaria, Israel and Romania.