Flats re-rolling companies in Turkey have pulled up their offers further, supported by stronger local positions of local HRC mills and their recent sales with an upward trend. However, the demand for coated and CR steel has not been supportive, considering the recent trade policies in the EU and slower domestic demand due to political unrest and the related currency fluctuations and inflation expectations.
Since early past week, local 0.5 mmZ100 HDG has increased by $20/mt to $790-820/mt ex-works base with some suppliers offering even at higher levels. In the meantime, PPGI local prices have added $20-25/mt to $940-960/mt ex-works, which is considered a bit overpriced by the buyers. Turkey’s CRC for the domestic buyers is now at $690-710/mt ex-works, $10-20/mt up over the week. “Prices have increased but the demand has diminished since due to political issues and ongoing protests we are now facing currency rate drops and even higher inflation is expected,” a local producer told SteelOrbis.
The trend in the export prices from Turkey is not that positive – HDG increased only by $10/mt from the upper end to $740-760/mt FOB, while PPGI is now available at $905-925/mt FOB versus $920-935/mt FOB a week earlier. Turkey’s CRC export price increased by $20/mt on the lower end to $670-690/mt FOB, SteelOrbis has learned.
In fact, Turkey’s export positions in coated and CRC segments are considered to be shaky nowadays, following EU’s announced intention to impose a melt and pour clause in addition to already existing AD rates for Turkey’s coated material and recently announced caps for others quota. “What it means is that Turkey’s presence in EU market is already restricted and challenging and this clause, if comes into effect, will mean that Chinese HRC cannot be used for producing of materials for further sales to Europe,” a market source told SteelOrbis. “Those who use local HRC origin in Turkey will have beneficial positions but overall imports of HRC from China is to be less,” another source said.