Coated steel prices and cold-rolled coil (CRC) in Turkey have remained high this week, supported by firm hot-rolled coil (HRC) offers. However, the demand has been insufficient for coated steel specifically, given the lack of orders from the end-user side and the generally uncertain market situation. In addition, according to some sources, there are some coated steel cargoes in the region which were destined earlier to Ukraine and the sellers are trying to redirect those to alternative markets, to Turkey as well, and at much lower price levels.
Currently, the domestic hot-dip galvanized (HDG) offers are at $1,420-1,450/mt ex-works base: however, according to the re-rollers, the workable prices are closer to $1,370-1,380/mt ex-works. “Domestic demand for galvanized is not sufficient and buyers believe the prices might roll back soon. Another thing is that the production in Turkey for HDG is really big and there is no shortage at the moment,” a source told SteelOrbis. Most of the re-rollers are offering for May production nowadays. In the pre-painted galvanized iron (PPGI) segment the business activity is somewhat better due to some seasonal improvements, which were seen even before the war in Ukraine started. In addition, according to sources, the higher petroleum prices will have an impact on the PPGI production costs, and so buyers are gradually accepting the current prices. The official domestic PPGI offers are at $1,510-1,550/mt ex-works with the workable levels $10-30/mt lower than that. In the tinplate segment, the suppliers seem to be sold out for most of June production with the latest small deals closed at $1,750/mt ex-works base. In the cold-rolled coil market, the domestic offers in Turkey are at $1,380-1,420/mt ex-works, SteelOrbis has learned.
Sources report there is availability of much cheaper coated steel in the region nowadays, which may also disturb the local sales in Turkey at the announced prices. In particular, some of the market players report there is material on vessels coming from China and earlier destined to Ukraine and that the sellers are trying to find buyers for these volumes. Specifically, the PPGI offers, redirected to Turkey, are heard at as low as $1,200/mt CFR. The Chinese coated steel is subject to around 15 percent import tax in Turkey and there may be some quality issues. However, sources say that, with up to a $300/mt difference in prices, these issues might be easily disregarded.
