Business activity in Turkey’s coated and cold rolled (CR) steel market has failed to improve since demand from end-users and traders has remained extremely silent. According to suppliers, “The phone is not ringing”, due to the collapse of import HRC prices from China and the consequent decline in domestic offers in Turkey. Import scrap prices have also weakened and are set to decline further, making finished steel market players cautious as regards restocking. In addition, activity is still slow due to the upcoming elections.
As a result, flats prices have dipped over the past week, but the largest decline has been seen for pre-painted galvanized iron (PPGI) since the previous offers were unreasonably high. The product prices have decreased by $55-100/mt to $1,095-1,100/mt ex-works over the past two weeks, but some producers are still keeping prices at $50-80/mt higher. “There is no order, so there is no point in decreasing prices too much and also there is not much hurry for us for June [production],” one producer told SteelOrbis.
In the HDG segment, where prices had been falling more sharply previously, domestic base offers have declined by only $15/mt on the upper end to $960-1,005/mt ex-works. Some mills, however, are still targeting $1,010-1,030/mt ex-works.
Local CRC prices in Turkey have lost $30/mt on the upper end over the past two weeks to $880-910/mt ex-works, SteelOrbis has learned. In addition, one producer is offering imported CRC at $870/mt ex-warehouse.