Turkey’s flat steel market has failed to recover this week, amid still insufficient demand, pressure from slow exports, and aggressive import offers from China. In addition, the recent drop in import scrap prices has made flat steel buyers even more hesitant. As a result, Turkish producers have not had any option but to reduce their prices, but for now they have only provided mild discounts, especially in the hot rolled coil (HRC) segment.
Local HRC prices for January deliveries are now standing at $595-610/mt ex-works, down from $600-620/mt ex-works seen last week. Some deals have been signed at the lower end of the range, but most market players have reported that large buyers are still postponing active restocking. In the export segment, Turkey’s targets are at $560-580/mt FOB, down $10/mt on the upper end over the past week, but demand is said to be almost muted, especially in the EU. Turkish prices are the least competitive for European buyers, while in the North Africa Russia is quite aggressive with offers at $510-515/mt CFR, down $5-10/mt over the past week.
Import offers from China have touched $515-520/mt CFR this week for cargoes of Q195 grade HRC of 3 mm higher and, according the sources, one cargo has been booked at $513/mt CFR, and another at $517-518/mt CFR including some extras. Both supposed buyers have denied the purchases, but the market widely believes they were in fact done. By the end of the week, Turkish re-rollers have started to receive Chinese offers at $525-528/mt CFR for January shipment. The Egyptian mill has not been offering solidly this week, while Russia was offering at $500-505/mt CFR for sanctioned material and at $530/mt CFR for non-sanctioned material.
In the coated steel segment, local galvanized 0.5 mm Z100 prices have settled at $810-830/mt ex-works, down $10/mt over the past week, while commercial quality of pre-painted galvanized iron (PPGI) is on offer at $940-960/mt ex-works, down $10-20/mt. Turkey’s local cold rolled coil (CRC) prices are at $715-740/mt ex-works, relatively stable over the past week. However, some sources report discounts are applicable for serious buyers.
