The long-awaited price hike announced last week by Turkish integrated mill Erdemir is expected to create a positive atmosphere in the Turkish flats market and to give rise to a new momentum in the market.
The new prices announced by Russian steelmakers MMK and Severstal last week do not indicate major changes as compared to the prices announced last month. There has been a reduction only in Severstal's cold rolled coil prices. With a decline of $40/mt, Severstal's offer level for cold rolled coils is expected to be more competitive in the Turkish market.
The new prices announced by MMK and Severstal are presented in the table below:
Producer | Delivery term | Shipment | ||
$650/mt | $700/mt | CFR FO Turkey | December | |
$665/mt | $695/mt | CFR FO Turkey | Late January |
Bulgarian steelmaker Kremikovtzi is offering hot rolled sheets at $645/mt CIF FO Turkey for November shipments. On the other hand, the producer is offering hot rolled coils at $630/mt CIF FO Turkey, also for November shipments. The Bulgarian producer concluded sales at these levels last week. Following the price hike announced by Erdemir, we may see an increase in the prices of Kremikovtzi as well.
Although the prices for hot rolled coils ex-Ilyich mill of Ukraine for November shipments have not been announced yet, the price hikes announced in the Turkish local market are expected to bring relief to the market. The expectations for Ilyich's new HRC price are that it will be lower than $585/mt CFR Turkey.
The calm in the Turkish local market that we mentioned in our analysis titled “CIS mills hike their flats prices” dated September 18, 2007, will certainly dissipate and increased momentum will be seen in the market. The major sellers in the Turkish local market are likely to hike their prices this week.