Approaching general election impacts local Turkish HRC demand

Prices in the local Turkish hot rolled coil (HRC) spot market have remained unchanged week on week, while demand has remained sluggish this week. Market players say that the lack of improvement in demand in the local HRC market is due to ongoing tighter liquidity and uncertain sentiment because of the approaching general elections to be held on June 7.
 
Meanwhile, Turkish steel producers' HRC offers have increased by $10-15/mt week on week to $430-455/mt ex-works. Anticipated price increases in the global markets and the sudden rise in iron ore prices are considered to be two main reasons for the hike in HRC prices by Turkish producers. However, discounts are still available depending on buyers and tonnages. 
 
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.