Turkey’s flat steel exports negatively impacted by Chinese offers

Demand for Turkish flat steel exports has remained slack over the past week. Turkish hot rolled coil (HRC) offers to the export markets are currently in the range of $390-400/mt FOB, while Turkish cold rolled coil (CRC) export offers are now at $520-525/mt FOB.
 
After the declines recorded in iron ore prices, expectations of an increase in ex-China flat steel offers have been replaced by anticipation of a downward trend in Chinese export offers. Despite the euro gaining strength against the US dollar, Chinese export offers have continued to decline, still exposing Turkish producers to challenging conditions in their targeted export markets. It is believed that Turkish producers will better be able to compete in the export markets if iron ore prices stabilize and if the euro gains further strength against the US dollar.