Posted on 22 Aug 2023
Demand in Turkey’s coated flat steel sector continued to be seasonally weak in the last seven days, to 21 August, market participants inform Kallanish. Most producers were offering September- and October-shipment coated flats.
The majority of buyers remained inactive due to the holiday season and were also awaiting the Turkish Central Bank's decision this week regarding interest rates.
The impact on demand from the overstocking in pre-painted galvanized iron (PPGI), also known as colour-coated flat steel, was particularly strong in specific regions.
Following the earthquakes in February, there was a significant spike in demand for sandwich panels, leading to a substantial price increase as the government initially encouraged panel manufacturers to increase production. Many panel manufacturers placed PPGI orders with local mills and importers, including those from China and other countries.
However, due to budget constraints, the government later halted this support; therefore, within 2-3 months, demand for sandwich panels experienced a sharp decline. As a result, many panel manufacturers found themselves with large inventories of unsold panels. This has affected demand for PPGI products.
In hot-dip galvanized coil imports, there were some expectations of negotiations and possibly deals by the end of August; however, it was uncertain whether Turkish buyers would go for domestic or import purchases.
Source:Kallanish
