Domestic demand for coated steel in Turkey has failed to provide enough support for local re-rollers to fully transfer the increased prices for hot-rolled coils (HRC) in the offers for their products. As a result, the workable price levels for hot-dip galvanized (HDG) coils, pre-painted galvanized iron (PPGI) and cold-rolled coils (CRC) have moved down over the past week. Still, export demand has been somewhat livelier, with some deals closed to Europe.
According to sources, the current offers for HDG in the local market in Turkey are at $1,380-1,420/mt ex-works base, down $30-40/mt over the past two weeks. Some re-rollers consider $1,350-1,370/mt ex-works as the workable price for now, taking into account buyers’ bids. In the meantime, some producers, most probably not under pressure to sell for now, continue offering at high levels, at $1,450-1,480/mt ex-works, but those are not considered achievable. As regards exports, the workable price levels for HDG have been reported at $1,370-1,400/mt FOB. According to sources, some deals were closed at the end of last week to Spain, Portugal, the UK and Antwerp at the lower end of the mentioned range.
In the PPGI segment, some re-rollers have dropped their official local prices by $30/mt over the past two weeks to $1,500-1,530/mt ex-works, but some buyers have reportedly been ready to deal at as low as $1,470/mt ex-works. In the meantime, tinplate suppliers are taking their time to give new offers for July, but are thinking about $1,800/mt ex-works levels.
The situation in the CRC market has been relatively better, although some market players say it is only due to somewhat limited availability. Currently, local prices are at $1,380-1,420/mt ex-works base, although some producers are still quoting at $1,450/mt ex-works and above, SteelOrbis understands.
