Turkish coated steel market sees another downward correction

Low demand still prevails in the Turkish coated steel market, while prices have once again indicated a downward correction. Limited trade and also low import hot rolled coil (HRC) prices from China in particular have resulted in some negative sentiment. However, some re-rollers have refused to revise their offers despite pressure from buyers because they believe low import offers will vanish after the Chinese New Year holiday. Coated steel producers continue to offer mostly for April, but one or two companies still have room for March production. "It is early to cut prices for April now, while we also have not seen a real decline in raw material prices. We believe the current HRC offers from China will not exist in the market in a few weeks. Stocks are still low in the spot market and most buyers continue to wait to book for April orders. We are not in a hurry to update our prices amid this lack of clarity," one Turkish producer told SteelOrbis. On the other hand, some other producers hold a contrary view and have updated their prices. "We cannot act like nothing has happened. We always reflect price changes in HRC immediately in our prices. HRC prices have declined in Turkey because of the Chinese offers and we have updated our prices accordingly. We will continue to watch the market and set our prices accordingly," another producer told SteelOrbis. The lower prices have caused a small recovery in demand.

On the export side, demand has remained sluggish due to the Covid-19 lockdowns around the world and is not expected to recover before any easing of the lockdown measures.