Import shipbuilding offers to Turkey soften

The general softening trend of prices in the flat steel markets has been especially evident in export offers for plate. In previous months, plate mills had continuously increased their prices; however, with the fall in demand, they have been obliged to revise their offers. However, the price declines in the plate market, where Ukrainian mills in particular generally determine price levels, do not appear to have influenced the purchase activity of buyers in Turkey.
 
Ukrainian mill Alchevsk's offers for commercial grade plate and shipbuilding plate have dropped by $130/mt as compared to last month, with the producer's offers to Turkey currently standing at levels of $640/mt CFR for commercial grade plate and at $650/mt CFR shipbuilding plate. Another Ukrainian mill Ilyich's shipbuilding offers to Turkey are at $690/mt CFR. Meanwhile, Ukrainian plate producer Donetsk has made a downward price correction of $60-70/mt, reducing its offers to Turkey to the level of $630/mt FOB. On the other hand, Macedonian plate producer Makstil's plate offers are heard to be at €620-630/mt FOB. Makstil is reported to be offering plate to its immediate neighbors Bulgaria and Serbia at these price levels.
 
Switching focus to the shipbuilding sector, it can be said that the prices of the Ukrainian mills - the main sources of imported shipbuilding plate for Turkey - have undergone considerable decreases. According to information from Turkish shipyards, shipbuilding plate demand has narrowed substantially due to the scarcity of new shipbuilding projects. Currently, shipyards are not buying significant tonnages of shipbuilding plate as they are busy with overhauling works. The common opinion in the market is that prices may go down further. However, in this event, there does not appear to be much possibility of buyers in Turkey purchasing shipbuilding plate due to the weakness of demand in the shipbuilding sector.