The flats market in Turkey has started to see some cautious optimism after several weeks of price decreases in hot-rolled, cold-rolled and coated steel. The key reason is the certain change of moods not only in the domestic but also in the export markets, resulting from India’s recent announcement on export taxes. Global buyers and sellers are trying to evaluate the possible impact of the development on pricing for products of alternative origins and on the overall probable shifts in the demand-supply balance.
In the meantime, official HRC prices in Turkey have decreased over the past week amid mills’ attempts to boost sales. In the domestic market, the levels of offers dropped by $30-50/mt to $850-880/mt ex-works, which was in fact the unofficially discussed level last week. Still, mills admit that the prices above $850/mt FOB are not considered workable by buyers.
As regards export destinations, at the end of last week some of the HRC producers and also some of the re-rollers were trying to sell their materials to EU and non-EU buyers at $850-860/mt FOB and in some cases down to $820-830/mt FOB. This week, some feedback from buyers has been reported most probably due to the Indian duties, and some of the Turkish suppliers have decided to hold back offers, hoping for a trend reversal. “It [India’s export duty imposition] is certainly something to consider, but I do not think there will be an immediate effect. Today, mills are trying to create the right mood among customers in order to avoid further price drops,” a Turkish source told SteelOrbis. It is also worth mentioning that some Turkey-based re-rollers have withdrawn their offers this week, waiting for further market developments. Last week, many of them were dealing at $950-970/mt ex-works for HDG base.
