Turkish steel producers have turned their attention to the export markets amid the success of cheaper import offers in attracting current domestic demand, which has been on the weak side for a long time now. Market players in the CIS have reduced their overall export prices in response to aggressive offers from China. In this context, Turkish mills claim that import hot rolled coil (HRC) offers to Turkey have declined unreasonably, causing their profit margins to contract and making it more difficult for them to conduct business in the domestic market.
Meanwhile, Turkish mills have closed their production quotas for the local market before the Feast of Sacrifice holiday, and plan to save the rest of their quotas for the export markets. Turkish producers, whose December quotas have started to be filled, indicate that they cannot see a reason for further price reduction and in fact are not in a position to reduce their offers further.
Currently, Turkey's HRC export offers are still at $550-565/mt FOB and CRC offers are at $690-700/mt FOB. In the meantime, 0.5 mm HDG coil offers are standing at $800-805/mt ex-works, while export offers for pre-painted galvanized iron (PPGI) are still at $900-910/mt ex-works. The prices in question have remained stable since last week. Just as in the domestic market, steel mills are not willing to reduce their HRC offers for the export markets either.