It is observed that demand in the local Turkish pre-painted galvanized iron (PPGI) market has remained at low levels during the past week. In the given period, domestic PPGI prices in Turkey have increased by $40/mt.
Meanwhile, it is also observed that buyers are monitoring the global flat steel market while they postponed their purchases with the expectation of a decrease in prices. Market sources state that, despite the downward pressure on prices, Turkish mills are unlikely to reduce their domestic PPGI prices in the short term due to the supply tightness caused by their fairly full order books as well as one coated steel mill’s decision to cut its capacity while starting to operate within the scope of the reduced working time compensation scheme of the Turkish Employment Agency (ISKUR), which allows firms to send workers on leave with some compensation in times of economic, sectoral or regional crisis.
As a result, Turkish producers' domestic PPGI prices are now at $975-1,005/mt for RAL 9002 0.3 mm 100 gr/m² zinc-coated PPGI, at $815-845/mt for RAL 9002 0.5 mm PPGI and at $710-750/mt for RAL 9002 1 mm PPGI. All the offers in question are on ex-works basis and exclude 18 percent VAT.
In the same period, Turkish PPGI export quotations have increased by $40/mt to $815-835/mt FOB.