TURKEY FLAT STEEL WRAP: Prices up, demand improves in July

Flat steel prices in Turkey continued to rise in July due to strong demand and increasing global prices.

Most flat steel producers in the country are now accepting orders for October production.

In the first six months of the year, the country’s flat steel production increased, but consumption fell, according to the Turkish Steel Producers Assn (TÇÜD).

Turkey’s flat steel end-product consumption amounted to 8.12 million tonnes in those six months, a 6% year-on-year decrease. Flat steel end-product output reached 6.30 million tonnes, up by 21.20% 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 $530-540 per tonne ex-works on Friday July 28, up from $510-520 per tonne ex-works on June 30.

The weekly price assessment for Turkish domestic cold rolled coil (CRC) was $620-640 per tonne ex-works on July 28, up from $590-600 per tonne ex-works on June 30.

“Demand is very good and stocks are low, so producers keep increasing the prices. And all steel prices – scrap, iron ore, billet and rebar – increased together, so I do not expect prices to fall any time soon,” an executive with a steel service centre said on July 28.

Coated coil
Coated coil prices also increased in Turkey over July, in line with the rising HRC and CRC prices.

Demand remained strong for coated steel in the country as stocks were low, and most producers had filled their order books for 2-3 months ahead.

The weekly price assessment for Turkish domestic 0.50mm hot dipped galvanized coil (HDG) was $750-770 per tonne ex-works on July 28, rising from $725-760 per tonne ex-works on June 30.

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 $860-870 on July 28, rising from $800-845 per tonne ex-works on June 30.

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

HRC was booked from Ukraine at $475-480 per tonne cfr.

The weekly price assessment for Turkish HRC imports was $520-530 per tonne cfr on July 28, rising from $450-460 per tonne cfr on June 30.

And the weekly price assessment for Turkish CRC imports was $589-590 per tonne cfr on July 28, up from $530-535 per tonne cfr on June 30.

HRC exports
Demand for Turkish HRC improved in Europe in July, with several bookings being heard.

Turkey-origin HRC was sold to the region at $540-545 per tonne fob.

The weekly price assessment for Turkish HRC exports was $520-530 per tonne fob on July 28, up from $470-480 per tonne fob on June 30.

Flat steel trade volumes
Turkey exported 387,114 tonnes of finished flat steel in June 2017, which was 74.10% more than the 222,349 tonnes exported in June 2016, the Turkish Statistical Institute (TUIK) said.

The total included 242,011 tonnes of HRC, up by 84.80% year-on-year from 130,958 tonnes in June 2016.

In the first six months of 2017, Turkey exported 2,263,297 tonnes of flat steel products, up by 83.31% from the 1,234,687 tonnes exported in January-June 2016.

Of this total, 1,457,275 tonnes was HRC, up by 63.99% year-on-year from 888,649 tonnes in January-June 2016.

Turkey’s flat steel imports totalled 676,906 tonnes in June 2017, down by 9.33% year-on-year from 746,599 tonnes in June 2016.

The imported volumes included 402,472 tonnes of hot rolled flat steel, up by 11.63% year-on-year from 360,549 tonnes, according to TUIK.

In January-June 2017, Turkey imported 3,846,450 tonnes of flat steel, 13.85% less than the 4,464,991 tonnes in the corresponding period in 2016.

The country imported 2,174,097 tonnes of hot rolled flat steel in January-June 2017, down by 4.69% year-on-year from 2,281,110 tonnes.