The positive price trend in Turkish coated steel market has once again failed to come to a halt and the offers have risen by another $40-50/mt over the week. Most of the suppliers have been able to sell out June production volumes and now in July, while some have started sales for August and even September. Strong export demand, specifically from the EU, has supported the re-rollers greatly, while the local sales have slowed down amid financial risks.
Export prices rose by $50-80/mt due hectic business done over the past week or two and, moreover, the re-rollers are quite certain about new price increases as the EU market remains very active. According to sources, since the beginning of April Turkey sold over 200,000 mt of coated steel to Europe, mainly to its southern region.
On the other hand demand is sluggish in the local market due to high price levels, fluctuations in the USD/TL rate and traditionally silent Ramadan period. Buyers are cautious because they believe current price levels are not workable and the offers must eventually decrease because financial situation of most of the buyers is risky to work with the current price levels.
"The environment in the coated steel market is totally complicated at the moment. Producers have export demand but they are not sure for how long it will continue. Local buyers are totally frozen because of high prices. They do not believe prices will increase but the hot-rolled coil prices are also very strong. Re-rollers hope to obtain export demand at least until the end of June. Of course we can see slight corrections on prices if both local and export demand decline, but sharp declines are not possible, because some of the producers have already started to sell their September production. Supply remains limited in Turkey, " a producer told SteelOrbis.
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Turkish domestic prices (ex-works) |
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Product |
Price ($/mt) |
Weekly change ($/mt) |
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HDG 0.50 mm 100gr/m² |
1,260-1,350 |
+40/+50 |
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HDG 1 mm 100gr/m² |
1,240-1,260 |
+40 |
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HDG 2 mm 100gr/m² |
1,190-1,230 |
+40 |
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PPGI RAL 9002 0.3 mm 100 gr/m² |
1,530-1,550 |
+50 |
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PPGI RAL 9002 0.5 mm 100 gr/m² |
1,350-1,400 |
+30/+50 |
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PPGI RAL 9002 1 mm 100 gr/m² |
1,320-1,370 |
+50 |
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Turkish export quotations (FOB) |
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Product |
Price ($/mt) |
Weekly change ($/mt) |
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HDG 0.50 mm 100gr/m² |
1,280-1,300 |
+80/+50 |
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PPGI RAL 9002 0.5 mm 100 gr/m² |
1,350-1,380 |
+50 |