Due to high demand from export destinations and a good number of deals, Turkish hot dip galvanized (HDG) export prices have increased further, exceeding the local market levels.
Export offers have increased by $40/mt for HDG to $1,370-1,390/mt FOB. However, the prices for PPGI materials have remained unchanged since earlier this week at $1,420-1,440/mt FOB for August and September production. This unusual market situation is not expected to continue for very long. Prices are expected to increase further after Ramadan for all products in Turkey due to positive expectation in the feedstock segment and higher scrap deal prices.
"Export offers have increased because we have demand from export destinations, but the local market has really sluggish demand due to the lockdown and Ramadan. Stocks are low in the local market and we expect to see better demand and restocking after the end-of Ramadan holiday. On the other hand, hot rolled coil prices have already started to increase despite the low demand in the local market and market participants have already started to talk about $1,100-1,200/mt levels for HRC after the holiday, " a producer told SteelOrbis.
Local prices for coated materials have not changed since Tuesday, May 4. Prices for HDG materials are at $1,330-1,380/mt ex-works and prices for PPGI materials are at $1,420-1,450/mt ex-works, for August-September production.