Flat steel mills’ offers soften in local Turkish market, demand still weak

As last week the anticipated price cuts from local mills materialized in the Turkish domestic flat steel market, all eyes are now on the demand side. However, since deals have already been concluded at slightly below the mills' offer levels and as the automotive producers' usual summer maintenance periods are approaching, demand is not expected to improve this week either. Market sources believe that flat steel demand will reach medium levels in September-November in the local Turkish market.
 
On the other hand, while Turkish traders' flat steel offers did not indicate any significant changes last week, 2 mm hot rolled coil (HRC) quotations are currently at $690-700/mt ex-warehouse, while cold rolled coil (CRC) prices are standing at $780-800/mt ex-warehouse. In the meantime, Turkish producers' HRC offers are at $660-680/mt, hot rolled pickled and oiled sheet prices are standing at $700-720/mt, CRC prices are ranging at $770-780/mt and HDG prices are at $800-820/mt. All prices are on ex-warehouse basis. In addition, some mills may reduce their prices for July production materials by as much as $20/mt.