The recent hike in the electricity and gas prices for industries in Turkey has as expected resulted in bullish sentiments of mills for all products, including the flats market. Moreover, the hot rolled coil (HRC) and coated steel producers have been supported by a certain upturn in the demand which followed the decision to hike tariffs. Producers assume that some buyers were aiming to restock before prices skyrocket, and so some sales were seen for HRC, coated and cold rolled steel. The new price levels targeted by producers are rather high and it is not yet clear if they will succeed in achieving them in deals.
By the end of the week, Turkish mills have started voicing $650-670/mt ex-works base for HRC, while some sellers are indicating even $680-700/mt ex-works. Early last week, the workable levels were at $610-630/mt ex-works. “The prices are not yet settled and, although there is a good reason for the mills to increase prices, demand has to be there,” a source told SteelOrbis.
In the coated steel segment, most re-rollers report there have been some sales after the tariffs increased, which allowed re-rollers to destock a bit and finally raise offers following weeks of downward movement. Still, the price ranges lack sustainability for now and the situation is expected to gain clarity next week. For HDG, some producers are considering offering $800-830/mt ex-works for 0.5 mm Z100, while others are at $780/mt ex-works. Last week, local HDG prices were at $740-780/mt ex-works. The domestic offers for PPGI increased by at least $30-40/mt to $850-900/mt ex-works base. In the cold rolled coil segment, some re-rollers are at $750-760/mt ex-works, though some are still considering $720-730/mt ex-works as the workable levels.
