Steel plate prices in Turkey have stabilized this week even though business activity and suppliers’ actual sales have been minimal. The buyers generally are refraining from purchasing excessive volumes in view of the upcoming election and ongoing financial and economic risks. The suppliers, however, are not in a rush to drop prices significantly since they do not believe such a move would considerably boost their sales.
South Korean plate offers for June shipments to Turkey have remained at $920/mt CFR for St37 and at $950/mt CFR and higher for St44 grade. In addition, according to some buyers, S355JR plate from South Korea is at $980/mt CFR. Chinese suppliers are offering at $800/mt CFR for May-June shipments, although some market sources report that levels $10-20/mt lower are also achievable.
The European suppliers have chosen a different price approach. The official plate price from Bulgaria’s Stomana has remained stable at $1,040/mt CFR for June shipments, while Romania has decided to decrease its prices by $25/mt over three weeks, to $1,025/mt CFR, for the same shipment term. Still, most of the buyers report the workable levels are considerably lower than that. However, European sellers are aiming to refrain from significant discounts for now. One reason is that discounts will not create a splash in demand just yet. Another one is that “the price level in Europe is still high and factories do not have to lower the price for the Turkish market for now, while the lead time is in the second half of June,” according to a market source. Macedonia is at $1,000/mt CFR for June shipments, in line with last week’s levels.
In the local market, Turkey’s Erdemir has preferred to keep its June production base prices relatively stable at $1,000/mt ex-works. In the meantime, retail plate offers are now standing at $1,080-1,100/mt ex-warehouse, $50/mt down over the week.
