Hot dip galvanized prices from Turkey have added up to $60-70/mt since early this month, supported by some decent sales to overseas destinations. The rebound in the hot rolled coil (HRC) segment has become a positive factor too.
According to sources, Turkish re-rollers sold sufficient HDG volumes abroad over the past three weeks within around $560-580/mt FOB base. Specifically, most of the deals were done to Canada, the UK, Greece, Romania, Spain and Portugal. In addition, some lots were sold to Iraq and to Israel, SteelOrbis has learned. Being not under pressure to sell and supported by the uptrend in the HRC sector, Turkish HDG producers have increased their export prices in gradual steps to $620-630/mt FOB and above.
Currently, various levels are reported in the domestic HDG market, but the majority of prices are at $610-630/mt ex-works. According to sources, there are offers in the market for five to eight weeks of lead time; producers are offering for end of January and February production for decent orders, while some are claiming to be sold out and are setting price indications for March. “Market is crazy: one mill is ready to discuss $600/mt, another one says there is no material and gives $650/mt. Such things are not normal,” a source said.
The new HDG offers are generally yet to be accepted as the increase has been too sharp. Buyers believe that $10/mt discounts are possible to get and overall they expect prices to roll back to realistic levels soon. “Re-rollers are aiming to secure themselves some margin, because if HRC prices increased by, let’s say, $30/mt, the coated steel producers are trying to double this rise in their offers,” a tarder mentioned.