Posted on 03 Apr 2023
Turkey has further postponed its planned flat steel import duty increase, until 1 May, as announced in the country's Official Gazette on Friday.
The hike had originally been scheduled for end-February but was delayed after the earthquakes on 6 February.
At least two large flats producers located in earthquake-affected areas were temporarily incapacitated, while there was a need for containerised housing construction for those who lost their homes.
The current decision is expected to have a significant impact on the country's flat steel market, with market participants anticipating yet another postponement until 1 June.
“All producers are fully booked until June; for that reason, everybody expects another postponement [until 1 June],” a major local flats producer tells Kallanish.
Turkish flat steel products have not been competitive in export markets recently due to high production costs.
It is more important to provide assistance to the flat steel industry in Turkey to boost its export capacity than to increase the import duty, according to Kerem Cakir, chairperson of the Turkish Association of Cold Rolled, Galvanized, and Coated Coil Manufacturers (SOGAD).
Turkish producers expect a cost reduction of around $20/tonne due to lower electricity and gas tariffs from 1 April, according to estimates from market participants.
In order to enable exports, Turkish hot rolled coil prices should be at around $760-770/t fob for the EU market, compared to the current nominal export price of $810-830/t fob Turkey.
Turkish domestic mills are offering HRC to local buyers in the range of $820-850/t ex-works.
After the tragic earthquakes in February, Turkish customers immediately booked large import volumes of flats, including slab, HRC, cold rolled coil, and galv. However, the current general position for Turkish flat steel buyers is "wait and see”, with no interest in new import purchasing.
Source:Kallanish
