Over the past week, demand in the local Turkish pre-painted galvanized (PPGI) coil market has continued to remain weak. Market sources say that, with the referendum now over and the Turkish lira strengthening slightly against the US dollar, buyers are likely to resume purchases which they have been postponing for a long while. However, falling global flat steel prices have put pressure on Turkish domestic PPGI prices. Buyers are asking for lower offers and transaction prices will likely soften, according to market sources.
Turkish mills' local prices have remained unchanged compared to the previous week, with RAL 9002 0.3 mm 100 gr/m² zinc-coated PPGI standing at $950-1,005/mt, RAL 9002 0.5 mm at $800-830/mt and prices for 1 mm RAL 9002 at $690-745/mt. All the offers in question are on ex-works basis and exclude 18 percent VAT.
On the export side, declines in global flat steel prices have been putting pressure on Turkish PPGI offers for the export markets. Due to the ongoing sharp declines in iron ore prices, buyers in the export markets believe that flat rolled and coated steel prices will indicate further downward movement and so they are postponing their purchases, resulting in weak demand for Turkish PPGI. Currently, Turkish mills’ PPGI export quotations are at $790-840/mt FOB, remaining unchanged week on week.