Flat rolled and
coated product markets are still strong and they seem to be tending to maintain their strong position in the short term.
Tightness in hot rolled coil availability in the local Turkish market continues. The decrease in the offers given by major foreign suppliers is the main factor behind this situation. For instance, the fact that Russian steelmaker
Severstal directs its sales gradually and increasingly to the local market and prefers US market for export, cause a decline in hot rolled availability in the local Turkish market. Moreover, problems regarding Ilyich material, which is used in Turkish market very often, still continue. Especially hard winter conditions, price increases in raw materials and increases seen in
slab prices in Latin American market, and that the previously concluded bookings have not been delivered yet cause problems. It is forecasted that Ilyich will fulfill its obligations for previously concluded contracts in 1-2 months. During this period, new offers of the mill will be limited. In foreign markets, the fact that the US has become a very strong buyer causes almost all mills to direct their focus on the US market.
Tightness and uncertainty are observed in plates and sheets in the local Turkish market. Especially the increased activity in the
shipbuilding industry gives the impression that the prices will start to increase.
The rise in zinc prices also caused an increase in
galvanized material prices. Price increases are observed in
galvanized materials in Chinese and Indian markets. Turkish market is also increasing as well and
Erdemir is expected to hike its prices for
galvanized and hot rolled materials.