Over the past week, demand in the local Turkish pre-painted galvanized iron (PPGI) market has remained slack. Despite the weakness of demand, Turkish PPGI producers have increased their prices by $30/mt week on week, due to the positive sentiment which has started to prevail in the market since the US has reduced the 50 percent duty on Turkish steel imports to 25 percent as of May 17 and due to the sharp increases in global iron ore prices. According to market sources, demand for domestic PPGI in Turkey market is unlikely to recover in the short term due to the negative economic situation in Turkey, the approach of the summer season and the Ramadan period. However, coated steel prices in Turkish domestic market will likely be maintained at current levels as flat steel prices in the global market are expected to remain strong due to the high levels of iron ore prices.
As a result, Turkish producers' domestic PPGI prices have increased to $900-930/mt for RAL 9002 0.3 mm 100 gr/m² zinc-coated PPGI, at $740-770/mt for RAL 9002 0.5 mm PPGI and at $635-675/mt for RAL 9002 1 mm PPGI. All the offers in question are on ex-works basis and exclude 18 percent VAT.
In the same period, Turkish PPGI export quotations have also increased by $30/mt to $740-760/mt FOB.