The price downturn seen in the flats markets in Turkey in previous weeks has advanced significantly during and after the recent holidays, particularly in the coated and cold-rolled coil (CRC) segments. Re-rollers describe the demand for the mentioned products as “dead” due to low activity of end-users, high stocks in the market, and the generally very negative mood. The recently announced definitive measures in the EU against imports of corrosion-resistant steel from Turkey and Russia have made expectations in terms of sales to export markets even more pessimistic for re-rollers.
Current prices for coated and cold-rolled steel in Turkey are not even and vary in a rather wide range depending on the suppliers’ market evaluations and sales positions. Most of the sources report the domestic prices for 0.5 mm Z100 hot-dip galvanized (HDG) coils at $1,050-1,070/mt ex-works and up to $1,100/mt ex-works from some mills. Meanwhile, the workable level is estimated at $1,020-1,030/mt ex-works and maybe even lower. Local 2 mm Z60 prices are at $985-1,040/mt ex-works, while much higher offers are also available from some of the re-rollers. The domestic pre-painted galvanized iron (PPGI) producers’ offers are at $1,150-1,170/mt ex-works base, while some buyers believe at least $20/mt discounts are possible.
As for CRC, the market picture is a bit uneven. According to sources, the list prices are at $1,100-1,120/mt ex-works base, but mainly from producers who do not want to sell nowadays and are not ready to provide huge discounts, which is a must if one wants to conclude some transactions. Some of the suppliers agree that workable prices for CRC in Turkey are at $1,000-1,020/mt ex-works and maybe even lower in some cases.
As a result, domestic HDG and PPGI offers in Turkey have decreased by $150-180/mt and $180-190/mt since before the holiday, respectively. CRC offers have dropped by $100-120/mt over the same period.
In the HRC segment, domestic mills’ prices have decreased further from early this week by another $50/mt to $1,000/mt ex-works offered by most producers. Some of them, however, are trying to stick to $1,020/mt ex-works. In the meantime, many sources believe lower levels are also applicable in the domestic market. “I am quite sure that prices starting with a nine already exist,” a player told SteelOrbis. HRC in the domestic market is available for July deliveries. As regards exports, some of the offers have been reported at $1,000/mt FOB, but a lot of sources reported $950/mt FOB and lower is already available. However, this information has not been confirmed by the time of publication.
Import HRC is mainly available from India and China at $930-950/mt CFR and $870-900/mt CFR, respectively. The Russians are reaching out for bids and avoid direct offers, while some buyers believe $750/mt CFR and lower might be workable for their HRC.
