TURKEY FLAT STEEL WRAP: Prices increase, demand improves in June

Flat steel prices in Turkey increased in June on a combination of strong demand and increasing global prices.

Most flat steel producers in the country are now accepting orders for August-September production.

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

Turkey’s flat steel end-product consumption amounted to 6.80 million tonnes in those five months, a 3.40% year-on-year decrease.

Flat steel end-product output reached 5.30 million tonnes, up by 26.70% 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 $510-520 per tonne ex-works on Friday June 30, increasing from $490-495 per tonne ex-works on June 2.

The weekly price assessment for Turkish domestic cold rolled coil (CRC) was $590-600 per tonne ex-works on June 30, narrowing downward from $590-605 per tonne ex-works on June 2.

“Prices will increase [as] Chinese prices are also increasing,” one market participant said on June 30.

Coated coil
Coated coil prices also increased over June in Turkey, in line with increasing HRC and CRC prices.

Demand remained moderate for coated steel in the country as it was the Islamic holy month of Ramadan, followed by the post-Ramadan Eid Al-Fitr break at the end of the month.

The weekly price assessment for Turkish domestic 0.50mm hot dipped galvanized coil (HDG) was $725-760 per tonne ex-works on June 30, rising from $700-720 per tonne ex-works on June 2.

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 $800-845 on June 30, rising from $779-800 per tonne ex-works on June 2.

Import prices
Turkish buyers booked HRC from Ukraine and Russia in June, but not many CRC bookings were heard in the month.

A total of 30,000 tonnes of HRC was booked from Ukraine at $450-455 per tonne cfr. The buyers were tube and pipe makers, and CRC producers.

Another 20,000 tonnes of HRC was booked from Russian producer MMK at $455-460 per tonne cfr by tube and pipe producers.

The weekly price assessment for Turkish HRC imports was $450-460 per tonne cfr on June 30, down from $455-470 per tonne cfr on June 2.

And the weekly price assessment for Turkish CRC imports was $530-535 per tonne cfr on June 30, up from $520-525 per tonne cfr on June 2.

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

Several deals for Turkish HRC were made at $470 per tonne fob to Spain, Italy, the UK and Portugal in early June.

“As Indian prices are much more competitive, European buyers are not accepting Turkish offers. And Turkish producers prefer to sell in their local market [anyway],” a trader said on June 23.

The weekly price assessment for Turkish HRC exports was $470-480 per tonne fob on June 30, up from $460-470 per tonne fob on June 2.

Flat steel exports, imports
Turkey exported 447,462 tonnes of finished flat steel in May 2017, 202.83% more than the 147,762 tonnes exported in May 2016, the Turkish Statistical Institute (TUIK) said.

The total included 256,539 tonnes of HRC, up by 249.27% year-on-year from 73,450 tonnes in May 2016.

Turkey’s flat steel imports reached 610,946 tonnes in May 2017, down by 12.25% from the corresponding month in 2016, when 696,242 tonnes arrived in the country.

The imported volumes included 357,418 tonnes of hot rolled flat steel, up by 24.12% year-on-year from 287,961 tonnes, according to TUIK.
 

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