Turkish HDG mills focus on alternative markets amid EC antidumping investigation

Turkish mills have started to focus on alternative markets in recent weeks as the European Commission investigates an antidumping case against hot-dip galvanized steel coil imports from Turkey and Russia on a request from the European Steel Association. The case, which could retroactively impose duties on imports, has increased concerns among European buyers, sources told S&P Global Platts Nov. 29.

“As Eurofer’s move has been expected in the market, demand from the European market has almost disappeared in recent weeks,” an export manager of a Turkish producer told Platts Nov. 29, adding that it has started to focus on alternative markets in this sentiment.

“Nobody in Europe is currently demanding Turkish material due to the dumping investigation, while demand from Ukraine and Egypt is mixed. Turkish producers are currently offering DX51D with 100 g/sq m of zinc coating, 0.50 mm HDG at $1,180-$1,200/mt FOB in this sentiment,” the manager said.

The New Year’s slackness also has begun to dominate the overall market sentiment, and demand from almost all export markets, including the EU, is currently notably below expectations, sources said.

“Demand from the US market also disappeared following the Section 232 deal with the EU. We are currently focusing on the North African market,” a manager of another Turkish coated coil producer told Platts Nov. 29, confirming 0.50 mm HDG offers at $1,180/mt FOB.

Noting that domestic demand also has almost faded away due to the sharp currency depreciation, a general manager of a Turkish steel service center said he is expecting to receive new lower offers both from Turkish coated coil producers and import suppliers in the coming days.

“Low export demand could also support lower prices,” he said.

The EC opened an investigation into HDG coil imports from Turkey and Russia June 24 on allegations that imports of certain corrosion-resistant steels originating from these countries were being dumped, as Platts reported previously.

Predisclosure of the investigation is expected Dec. 24, while provisional measures, if any, will be imposed by the EC until Jan. 24, 2022. Definitive measures could be announced on July 20, 2022, which could raise the pressure on Turkish mills’ HDG pricing.

— Cenk Can