Demand in the local Turkish hot rolled coil (HRC) spot market has remained slow this week, while prices of HRC and HR P&O have remained unchanged week on week. Local traders state that demand was better last week, but the strengthening of the US dollar has slowed down activity in the market this week. As the most important problem in the local Turkish HRC market is still the collection of payments, both buyers and sellers are suffering from cash flow issues, with the problem being exacerbated by the ongoing strengthening of the dollar.
Meanwhile, Turkish steel producers' HRC offers have remained stable week on week at $420-440/mt ex-works, for June and July output. While demand received by producers is lower compared to last week, Turkish producers are unwilling to accept local buyers' requests for discounts.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product | Price ($/mt) | |
Eregli | Gebze | |
2-12 mm HRC | 470-480 | 475-485 |
1.5 mm HRS | 500-510 | 505-515 |
2-12 mm HRC (for large volume sales) | 460-470 | |
3-12 mm HR P&O | 530-540 | 545-550 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.