The Turkish flat steel market has started a new week with a negative sentiment. Along with the still low domestic demand, the news about one re-roller starting an ex-stock “summer sale” for flats at prices much below actual market levels, has much affected the general sentiment. Over the weekend, the market players have spread the news about one of the local re-rolling companies announcing the sales prices for various ex-stock flats by at least $100-150/mt below the general market levels, which has of course put the market in a shock. Still, while some of the sources are now expecting this move will damage the market and decrease prices drastically, others say the impact will be limited and not many will pay attention. “When they are losing money because of the price drops, they sell all they have and they do such things to manipulate the market and to put pressure on HRC prices,” a source said.
Since the week has just started and there is a lot of uncertainty, not all of the HRC mills and coated steel producers have announced their new prices. Still, the market seems to be heading south. In the hot-dipped galvanized (HDG) segment, the prices voiced today by several mills are at $1,000-1,030/mt ex-works base, down from around $1,030-1,060/mt ex-works, seen at the end of the past week. Pre-painted galvanized iron (PPGI) local offers are at $1,100/mt ex-works from some suppliers versus $1,150-1,170/mt ex-works base seen last week. Cold rolled coil (CRC) prices are for now set pretty much in line with the HDG base ones, losing from the upper end over the week only.
In the HRC segment, some mills prefer to still stay at $1,000-1,050/mt ex-works for July deliveries, while some have already voiced the sales at down to $900-950/mt ex-works is a clear possibility. In the retail market, the prices for the hot rolled sheets are at $950-990/mt ex-warehouse from the large traders, while the general range of the past week stood at $980-1,060/mt ex-warehouse. The local retail prices for cold-rolled sheets are at $1,130/mt ex-warehouse, but voiced only by few for now.
The prices for all flats are to gain clarity later on this week once the market settles down and some clearer price ranges will be available once all of the suppliers come up with their price ideas according to the developments and buyers’ reaction, SteelOrbis understands.
