There has not been any significant improvement in end-user demand in the Turkish
flats market, including previous weeks when local market prices were on an uptrend. With end-user demand showing no improvement, traders' stock levels have not declined. Thus, against the background of traders' high stock levels, the continuing stagnancy on the demand side and discounts of $30-40/mt from some mills, it is possible to hear a variety of price levels in the domestic market. However, it should be noted that the current situation in the local
flats markets is that offer levels have changed but that transaction prices have not declined. Mills, traders and buyers in the local market think that
Erdemir will increase its prices for June production. With this expectation, traders are trying to maintain their prices within a certain range.
On the other hand, the decreases seen in iron ore, scrap and rebar prices both in local and foreign markets have caused
flats market players to be more cautious. As of this week, in the Gebze, Eregli and Iskenderun regions of
Turkey, finished product offer prices have softened by $10-20/mt. In the coming week,
Erdemir's price announcement for its June production will have a direct impact on the trend in the local market. As of this week, in the local Turkish
flats markets, hot rolled product (2 mm) and cold rolled product (1-1.5 mm) prices are standing at the levels of $720-740/mt and $820-850/mt respectively. It is possible to hear lower offer levels from some companies which are seeking to destock materials as they are in need of cash.
On the import side, after Ukrainian steelmaker
Zaporizhstal concluded
HRC transactions at $720/mt CFR, its fellow Ukrainian producer
Ilyich is observed to have decreased its offers. With its
HRC price at $730/mt FOB early last week,
Ilyich decreased its
HRC prices to $700/mt FOB and its
CRC prices to $800/mt FOB at the end of last week. Towards the end of this week, the producer has revised its offers again, decreasing its
HRC prices to $680/mt FOB. While traders concluded ready cargo deals for
Ilyich production
HRC at $660/mt in previous weeks, this week their ready cargo offers for the same material given to
Turkey are at $680-685/mt CFR. Furthermore, it is heard that Romanian mill ArcelorMittal Galati intends to offer
HRC to the Turkish market at the level of $840/mt CFR; however, there is a big question over whether the market will accept this price. In the coming week,
Erdemir is expected to increase its prices for June production.