Flat steel demand in the Turkish domestic market has been becoming weaker, while prices in the spot market have remained unchanged. In the meantime, profit margins have been shrinking and liquidity shortages are increasingly seen in the flat steel market. However, low stocks have been supporting spot prices to remain at their current levels for now, despite the price cuts announced by mills.
On the other hand, market players, who are expecting mills' prices to soften further next week, currently avoid booking new orders, even though they have minimal stock levels. Meanwhile, mills' successive price cuts will likely prevent spot prices from remaining unchanged over a long time. At the same time, no signs have been observed of an improvement in demand in the market.
The domestic sales prices of traders for local and imported hot and cold rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product | Price ($/mt) | |
Eregli | Gebze | |
2-12 mm HRC | 650-660 | 650-660 |
1.5 mm HRS | 695-710 | 690-710 |
3-12 mm HR P&O | 695-700 | 695-710 |
0.6 mm CRC | 785-790 | 790-800 |
0.7-2 mm CRC | 755-760 | 750-760 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT