Turkish coated steel prices hit record high, demand declines

Turkish coated steel prices have increased by $70-100/mt since last week and by $30-60/mt since last Friday, due to increases in scrap and hot rolled coil (HRC) prices in Turkey,. However, demand has declined after the latest price rise. Producers are offering HDG for April production and PPGI for March production and, because of the longer delivery terms and higher price levels, demand has declined significantly in the Turkish coated steel market. Most buyers now have orders for February and March production and they want to gain a clearer picture of the market situation before they buy at current prices.

"Scrap and HRC price levels have hit record-high levels, and so have coated steel prices. We did not increase our prices without a reason, but we also can understand the situation of buyers. Since last year, the Turkish lira has declined significantly against the US dollar and coated steel prices have also increased by 50-55 percent since last September. They want to wait at the moment because of lower purchasing power and longer delivery terms. Also, many buyers have already ordered for February and March, and now hardly anybody needs material urgently," a producer told SteelOrbis.

On the other hand, demand from the EU has declined dramatically after Germany's lockdown decision. Germany has closed schools, daycare centers and called on companies to take a long Christmas vacation or to work from home until January 10, while the lockdown may also be extended. This decision has created great concern within the EU and before the coming holiday season, while buyers in the other EU countries have also decreased their import queries.