Although hot rolled coil (HRC) prices have remained stable in Turkey for now, sentiment in the local hot dip galvanized (HDG) market has again become negative, following pessimistic expectations in the scrap market and overall limited demand for coated steel. Another issue is the lack of liquidity in the market. As a result, aggressive HDG offers are back in the local market of Turkey.
While last week most local offers for HDG were standing at $670-700/mt ex-works base, currently suppliers’ positions vary depending on delivery times. Producers, who have excessive stocks, are once again making very aggressive domestic offers at $635-645/mt ex-works, aiming to sell off their products before HRC prices fall. According to sources, such cargoes are available with a shipment period of two to three weeks from now. “I think they kept stocks to sell at higher prices. Now they are panicking and trying to close deals,” a local source said. As these sellers have cut their prices rather significantly over the past week, the mills who are not in a rush and are offering for March deliveries have had to cut prices as well. Their offers are mainly at $655-670/mt ex-works, SteelOrbis understands.
Export offers for HDG have been reported at $650-675/mt FOB base for March shipments. Some deals have been closed to North Africa and Spain. Overall, export activity is considered to be moderate.