TURKEY FLAT STEEL WRAP: Prices continue to fall, demand moderate in May

Flat steel prices in Turkey continued to fall in May, on moderate demand, and market participants expect June to be just as slow, as the Islamic holy month of Ramadan, and Eid will take place during the month.

Most flat steel producers are accepting orders for July production.

The country’s flat steel production increased, but consumption decreased in January-April of 2017, according to the Turkish Steel Producers Assn (TÇÜD).

Turkey’s flat steel end-product consumption amounted to 5.51 million tonnes in January-April 2017, a 1.20% year-on-year decrease.

Flat steel end-product output reached 4.23 million tonnes, up 28.20% year-on-year

Domestic prices
Hot rolled coil, cold rolled coil
Metal Bulletin’s weekly price assessment for Turkish domestic hot rolled coil (HRC) was $490-500 per tonne ex-works on May 26, falling from $500-505 per tonne ex-works on April 28.

The weekly price assessment for Turkish domestic cold rolled coil (CRC) was $590-600 per tonne ex-works on May 26, falling from $620-625 per tonne ex-works on April 28.

"The market expects prices to increase in line with rebar prices. Demand is OK – not very slow," a trader said on May 26.

"Even if there are rumours that prices will increase, I don’t think they will," another trader said.

Coated coil
Coated coil prices increased slightly over the month in May in Turkey, after significant declines in April. 

Demand remained moderate for coated steel in the country.

Demand for exports of hot dipped galvanized coil (HDG), especially in Europe and the USA, was not very strong, as prices from Indian suppliers were more competitive.

"The market was mostly flat this week, demand is moderate, and it is slow in export markets, [particularly] the USA," a producer source told Metal Bulletin on Friday, May 15.

The weekly price assessment for Turkish domestic 0.50mm HDG was $700-720 per tonne ex-works on May 26, compared with $700-710 per tonne ex-works on April 28.

The weekly price assessment for Turkish domestic pre-painted galvanized iron (PPGI), or colour-coated coil, of 0.50mm gauge, with 9002 colour code, was $790-800 May 26, rising from $770-800 per tonne ex-works on April 28.

Import prices
Turkish buyers booked hot rolled coil (HRC) from Ukraine and Russia in May, but not many cold rolled coil (CRC) bookings were heard in the month.

HRC bookings were made from Ukraine at $455-460 per tonne cfr.

The weekly price assessment for Turkish HRC imports was $455-470 per tonne cfr on May 26, down from $460-480 per tonne cfr on April 28.

And the weekly price assessment for Turkish CRC imports was $520-525 per tonne cfr on May 26, down from $525-530 per tonne cfr on April 28.

Market participants in Turkey expected new offer prices from the CIS to be $5-10 per tonne higher.

"Demand in the market is not strong due to the holiday season," a steel service centre executive said on June 2.

HRC exports 
Demand for Turkish HRC weakened in Europe in April, as prices from Turkish mills were higher than the European bids.

Turkey sold 1,000-2,000 tonnes of HRC at $470-480 per tonne fob to Europe late May, with offers at $480-490 per tonne fob. 

"Demand in Europe is not that strong, but prices will increase," a market participant said.

The weekly price assessment for Turkish HRC exports was $470-480 per tonne fob on May 26, down from $500-505 per tonne fob on April 28.

Flat steel exports and imports
Turkey exported 444,896 tonnes of finished flat steel in April 2017, 93.16% nearly double the 230,291 tonnes exported in April 2016, the Turkish Statistical Institute (TUIK) said.

The total included 298,024 tonnes of HRC, up by 66.86% year-on-year from 178,606 tonnes in April 2016. 

Turkey’s flat steel imports reached 627,186 tonnes in April 2017, down by 20.58% from the corresponding month in 2016, when 789,683 tonnes arrived in the country. 

Imported volumes of flat steel included 354,018 tonnes of hot-rolled material, down by 9.12% year-on-year from 389,537 tonnes, according to TUIK. 

Trade cases
Thailand set definitive anti-dumping duties on imports of hot-rolled flat steel products in coil and sheet form from Brazil, Iran and Turkey in May.

Imports from Turkey’s Erdemir and Isdemir will be subject to a duty of 27.27%, down from 28.34%, while other Turkish suppliers saw their duty lowered to 38.23%, from 38.52%.

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