Turkey’s flats re-rollers under pressure from low demand, discounts possible

Friday, 06 September 2024 16:26:13 (GMT+3)   |   Istanbul

Turkey’s flats re-rolling companies have remained under pressure from low demand for their products, particularly in export markets, while the market has been under influence of China’s fluctuating hot rolled coil (HRC) offers and the firm stance of domestic feedstock suppliers. As a result, the pricing for cold rolled coils (CRC) and coated steel in Turkey has mainly remained stable over the past week, with only some producers having softened their official offers. However, additional discounts are considered applicable, especially for exports, depending on the supplier’s sales position.

The official domestic hot dip galvanized (HDG) coil prices in Turkey have slid by $10/mt on the upper end of the range over the past week to $760-790/mt ex-works for Z100 material. Sources report that most companies are offering for November deliveries and are under pressure to provide discounts, while the workable prices for HDG with shorter lead times are at the higher end of the mentioned range.

Regarding exports, the offers for the same specification are at $720-740/mt FOB for October-November shipments minimum, versus $730-760/mt FOB reported last week. Still, some of the suppliers are offering at $10/mt higher. “Exports are quite slow since Europe has been absent for its seasonal holidays and its return is not as positive as one would expect. Prices are under pressure, Turkey’s production is reduced and therefore import HRC restocking is cautious,” a source at a producer told SteelOrbis.

In the PPGI segment, realistic domestic prices for commercial grades are considered to be at $890-920/mt ex-works, while the offers are up to $930/mt ex-works, similar to the previous levels. As for exports, however, some of the re-rollers, according to market information, are ready to deal at $880-900/mt FOB, down $10-20/mt from last week’s levels. However, some are still offering at $920/mt FOB. The material is mainly available for end-of-October and early November shipments.

In the meantime, Turkey’s CRC prices have not changed much over the past week and are ranging at $680-700/mt ex-works for domestic buyers and $670-700/mt FOB for exports, SteelOrbis has learned


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