Official offers for hot rolled coil (HRC) declined mainly to USD 605-615/t EXW, while market discussions of deals at USD 600/t and even unconfirmed offers at USD 590/t indicated that price pressure had extended beyond official price lists. Prices remained at USD 605/t among producers in the Aegean and Iskenderun regions, while producers in the Marmara and Black Sea regions gradually lowered their prices. In the spot market, traders recorded declines of around USD 5-10/t, bringing the average HRC price to approximately USD 615/t, thereby following producers' pricing.
The main reason behind this decline was the drop in imported scrap costs, which eased cost pressure on producers. In addition, export channels have not been able to open as expected due to the European Union's quota system, prompting producers to focus more on the domestic market.
Already weak domestic demand has further intensified price competition. With the arrival of the summer season, service centers and end-users have continued to keep purchases at minimum levels, preventing the market from recovering.
A similar picture has emerged in the cold rolled coil (CRC) market. Although list prices have largely remained at USD 700/t, discounted offers as low as USD 690/t have been reported from many producers, indicating intensifying competition. In particular, reports of sales below official prices by a Black Sea-based producer stood out as one of the market's most aggressive pricing moves. Other rerollers have also revised their list prices downward in recent days to align with market conditions.
The hot-dip galvanized (HDG) segment has remained more resilient than other product groups. However, the downward trend has not come to a complete halt. Offers for 0.50 mm material have generally been quoted at USD 780-790/t EXW, while an international producer's Iskenderun-based operation reduced prices for Z100 coated material to USD 800/t, confirming the overall market direction. Although price declines in the galvanized segment have been more limited than those seen in HRC and CRC, weak demand continues to leave producers with no room for price increases.
The pre-painted galvanized steel (PPGI) market, which had remained relatively resilient in previous months, has also seen its downward trend accelerate. Producer offers fell within a short period from USD 915-940/t to USD 900-920/t, with individual mills reducing prices by approximately USD 15-25/t. As a result, downward price movements have now spread across the entire flat steel product segment.
Overall, the market continues to be characterized by supply exceeding demand. While service centers are managing inventories cautiously, end-users continue to postpone purchases in anticipation of further price declines. This situation is forcing producers to offer more competitive prices in both the domestic and export markets.
In the short term, there is no significant factor supporting a strong market recovery. Unless imported scrap prices rise sharply, demand in the European market improves significantly, or domestic consumption picks up, producers are expected to prioritize maintaining current price levels rather than pursuing price increases. Until the September-October period, the market is expected to remain under pressure from weak demand, intense competition and limited margins, while any potential price recovery is likely to depend on either a strong increase in raw material costs or an unexpected improvement in demand.
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