The domestic prices for coated and cold-rolled coils in Turkey have once again decreased sharply in official offers over the past week and even lower prices are available for serious orders, though from only a few suppliers. The main reason is the stalled demand in the local market, while exports to Europe have also been slowing down due to the holiday period. In addition, the hot-rolled coil (HRC) prices in Turkey have fallen over the past week, although the prices for this product are still considered to be too high to be workable.
Currently, the official HDG prices mainly for first half of June delivery are at $1,320-1,330/mt ex-works base, down $30-50/mt over the past week. However, a lot of buyers report re-rollers are ready to give additional discounts of at least $20-30/mt in the case of serious orders and for good tonnages. “All kinds of prices are there in the market as some of the sellers are aggressively trying to sell. HRC decreased, it is true, but the demand for coated is dead, this is the problem,” a source said. In the pre-painted galvanized iron (PPGI) segment, the local base prices have reportedly dropped to $1,420-1,450/mt ex-works, versus $1,470-1,500/mt ex-works in the official offers last week. The local CRC prices in Turkey have dropped even more significantly over the past week, by $120/mt to $1,260-1,280/mt ex-works.
In the meantime, market players are concerned regarding the aggressive ex-China offers for coated steel, which are used as an additional factor to push for lower prices. Most of the sources reported the 0.5 mm Z100 levels from China are at around $1,170-1,200/mt CFR for May-June shipments and that these levels are quite negotiable.
The HRC market of Turkey has also seen a downturn, as SteelOrbis reported earlier. However, the provided discounts are not considered enough for buyers, as the prices for their own products (coated and cold-rolled steel, as well as welded pipes), are not too far away. Currently, the official offers for HRC in Turkey are at $1,230-1,300/mt ex-works, but the prices of $1,200/mt ex-works are even $10-20/mt lower than what might be seen in the market very soon, sources believe.
