Turkish coated steel prices up further amid active local and export demand

Coated steel prices in Turkey have increased by another $5-15/mt since the beginning of this week, supported by the active demand from end-users in the local and export markets. Most of the Turkish producers are sold out for January and are not in the market to trade for February deliveries. On the other hand, the Turkish lira is at a record low against the dollar, raising the concerns of traders. "End-user demand has also supported the spot market, but we do not believe that these price levels can be sustainable. After the restocking by end-users, we will probably see a downward correction of approximately $10-20/mt because of the uncertainties in the economy," a trader told SteelOrbis.

Exports have been rather hectic and supportive as over the past couple of weeks Turkish mills have managed to sell large volumes to various countries, namely, Greece, Italy, Spain, Portugal, the UK, Iraq and some others. “Every re-roller now has at least one vessel to ship now,” one trader said. Specifically, the Turkish mills are supported by demand in the EU where there is a certain lack of local supply and the absence of competitive offers from alternative destinations. According to some sources, in October Turkey sold at least 100,000-120,000 mt of coated steel abroad, which eased the pressure on the producers. “The main export destination is still the EU and we do not expect any decline in demand until the holiday period," a producer told SteelOrbis.