Steel plate prices in Turkey have continued their downturn for several weeks now. Business activity remains low, mainly as buyers are trying to evaluate the possibilities of achieving discounts. Although scrap prices in the country are trending up, offers for hot-rolled coils remain significantly lower than plate offers. Moreover, some foreign plate suppliers are quite aggressive, adding pressure to the market.
Particularly, South Korea is offering plate at $980-1,000/mt CFR, versus $1,100/mt CFR last week. According to sources, the suppliers are trying to stimulate sales, but the demand remains low as buyers expect bigger and bigger discounts. “It [Korean material] has a disadvantage since it is for September-October shipments and it takes 45-60 days at least which is risky in the current market situation. Buyers cannot be sure of what the price will be at that time,” a source explained. Although offers from South Korea are for a longer lead time, the low level still impacts the market mood, making buyers hesitant and forcing other suppliers to provide discounts.
Bulgaria’s Stomana and Romania’s Liberty Galati are offering $1,200/mt CFR and $1,200-1,220/mt CFR, having dropped prices by $100/mt and $20-30/mt over the week respectively. “Clients’ expectations are below $1,000/mt CFR for plates. They say plate should not be over $1,000/mt while the [hot-rolled] coil price is at $700/mt,” a plate seller said.
Tukey’s sole domestic plate producer Erdemir, according to sources, is now offering $1,200-1,220/mt ex-works for S235JR plate, down by around $50/mt over the past week.