Steel plate prices have continued to fall in the Turkish market, under pressure from insufficient demand, weaker economic fundamentals, tight competition in the import segment, and also being affected by the downturn in the segment of hot-rolled products. In addition, there has been a rather sharp drop in import scrap prices. Still, ex-EU plate offers, which were overpriced previously, continue to see the largest drops week by week. “EU prices have been too high and just recently have started to be adjusted,” a trader said. As a result, European prices have lost $70-100/mt over the past week depending on the supplier. Local offers in Turkey have decreased by lower margins, but will most probably continue weakening. South Korea, whose prices are down $10-20/mt over the week, is at the most competitive level in the current market.
Import offers from Romania and Bulgaria are at $1,250-1,300/mt and $1,350/mt for S235JR grade, respectively, both on CFR basis. Macedonia returned to the market with offers for the shipbuilding grade of the plate at €1,320-1,330/mt CFR, but buyers report €20-30/mt discounts are possible. South Korea is offering $1,190-1,200/mt CFR for August-September shipments, while other foreign suppliers are in the market to sell for July-August.
Domestic mill Erdemir’s official plate offers have decreased by $20-50/mt over the past week to $1,400-1,430/mt ex-works for S235JR. However, some sources reported $1,380/mt ex-works levels are also on the table. In the retail market, S235JR plate prices are at around $1,440-1,450/mt ex-warehouse and at $1,460-1,490/mt ex-warehouse for S355JR, SteelOrbis has learned. As a result, traders’ prices have decreased by $110-120/mt over the week.
The sentiment is negative in Turkey’s plate market, taking into account the challenging situation in the hot-rolled products’ market and decreasing prices. “The spread of $450-500/mt between HRC-HRP seems too much for buyers. Most probably plate prices will settle down at lower prices than current ones,” a trader told SteelOrbis, adding, “Even the South Koreans are not comfortable in collecting orders despite their low prices.”