Turkish flats producers have dropped prices again in view of feeble demand in the country. Besides, prices for import material have fallen further in Turkey. As a result, some pipemakers and stockists have started replenishing their inventories, even booking flats in large batches, as they believe prices will not fall substantially again. Other buyers still prefer to remain in wait-and-see mode, awaiting more price cuts. And though manufacturers have not yet signed enough deals to reverse the downward trend, the fall of prices may slow down.
In particular, HRC producers Colakoglu and Erdemir have dropped domestic offers by about $10-20/t w-o-w, to $720/t EXW/FOT/FOB excluding 18% VAT. Market participants also report that the companies grant discounts of $10-15/t on batches over 10,000 t.
As to exports, most foreign buyers refrain from purchases in the falling market. So, Turkish exporters have also had to cut quotations. For example, Turkish material is available at $710-720/t FOB ($20-50/t down w-o-w) to Italy, Spain and the USA.
In the import segment, only distributors of NLMK's HRC officially make offers. They have also reduced prices by $30/t w-o-w, but will have to make further cuts to sell HRC to Turkey in view of 5% or 9% import duty. At the same time, distributors of MMK's material have withdrawn their offers of May material. They will set new prices based on orders they are collecting at the moment. Market participants expect quotations of MMK’s flats to lose at least $25-30/t. As to Ukrainian material, traders offer only Ilyich's HRC to Turkey. They sell the material at $655-660/t C&F, $50/t below prices distributors quoted two weeks ago. Turkish pipemakers may find these prices attractive, as quotations of Ukrainian HRC including 5% import duty are still $27-32/t below the level of domestic offers. Zaporizhstal's material is not available to Turkey yet. However, considering other suppliers’ levels, it must be priced by $30-45/t lower than two weeks ago.
(Source: www.metalexpert-group.com)