Both domestic and export cold rolled coil (CRC) prices in Turkey have decreased significantly over the past week, mainly as re-rollers have failed to reflect costlier feedstock levels in their sales prices. End-user demand remains rather weak and, in addition, hot rolled coil (HRC) prices have started to weaken as mills face a lack of trading activity.
Local CRC prices in Turkey this week are standing in a rather wide range depending on the seller’s position. Some suppliers officially offer $530-540/mt ex-works but admit there is no buyer at this level. Some are standing closer to the market reality and are negotiating at $510-520/mt ex-works and consider prices down to $505/mt ex-works possible. “Low demand on the industries’ side is a problem. We increased prices to $550-570/mt ex-works when HRC was high, but demand was too weak for buyers to accept that,” a re-roller told SteelOrbis. As a result, over the past week the realistic prices for CRC in Turkey fell by $10-35/mt. The product is mainly offered for August and early September deliveries.
Export demand has been reportedly slow with offers coming at the lower end of the domestic price range - at $505-515/mt FOB. Some traders believe $495-500/mt FOB levels are achievable, especially from those mills who usually supply large lots to industries and are now suffering from a lack of orders.