Cold rolled and coated steel prices in Turkey have seen a significant decrease over the past week, with the low demand and falling feedstock prices being the main factors. Most market sources say that suppliers are avoiding giving solid prices to buyers, especially in the cold rolled segment, where there is a need to diminish stocks.
In the hot dip galvanized coil (HDG) segment, domestic offers have settled at $1,250-1,290/mt ex-works base this week, having lost $20-40/mt since late August. “Some suppliers may be ready to give $20-30/mt discounts since the situation is becoming desperate with no sales at all,” one source told SteelOrbis. One re-roller, according to sources, is ready to deal for HDG at $1,220/mt ex-works, marking the lowest price in the market as of today. In the meantime, although low domestic demand is putting pressure on the mills, some of them are already offering for November and December. “There were good sales for November to the US at around $1,320/mt FOB, but for December they are not ready to buy,” a source told SteelOrbis. Pre-painted galvanized iron (PPGI) is currently available in Turkey at $1,340-1,370/mt ex-works base, down by $20/mt over the past week.
In the cold rolled coil (CRC) segment, the situation regarding demand and prices is even worse as compared to the coated steel market. Local suppliers prefer to deal with each customer individually, and so all kinds of prices are heard in the market. Most sources surveyed by SteelOrbis report that the current price levels are at $1,160-1,180/mt ex-works base, down from $1,180-1,240/mt ex-works seen last week. However, according to sources, the level of $1,130/mt ex-works has been seen already and some buyers believe it is possible to obtain below $1,100/mt ex-works. “I think a lot of sellers need to decrease their stocks since end-user demand does not exist,” a trader said.