Turkey’s HRC and CRC export offers soften due to stiff competition

After a period of sluggishness amid the summer holidays and Ramadan, although some improvement has been seen in Turkey's flat steel export activity, the revival in demand expected in September has not materialized yet.
 
Against a background of significant declines in iron ore prices, Chinese steel producers have become very aggressive in their flat steel export offers, and their offers to the Middle East, one of Turkey's major export markets especially for coated products, have undermined Turkish suppliers' market share. Currently, Chinese mills' hot rolled coil (HRC) export offers are standing at $500-510/mt FOB, their cold rolled coil (CRC) offers are at $580-590/mt FOB, while their hot dip galvanized (HDG) coil offers are at $650-mt FOB. Due to these low priced offers, demand for Turkish material has weakened and so have export sales.
 
In line with stiff competition, Turkey's HRC and CRC export offers have declined slightly. In the meantime, although export offers for coated flat steel products have not decreased yet, prices are expected to see a downward adjustment next week.
 
Currently, Turkey's HRC export offers are at $600-610/mt FOB, CRC offers are at $720-730/mt FOB, 0.5 mm HDG coil offers are at $810-820/mt ex-works, while export offers for pre-painted galvanized iron (PPGI) are standing at $920-940/mt ex-works.