According to market sources, demand in the Turkish hot rolled coil (HRC) spot market has remained slack this week. During the past week, HRC prices have declined by $20/mt, while hot rolled pickled and oil (HR P&O) prices have decreased by $30/mt in the same period. No improvement in demand is expected before the general election to be held in the country on November 1. Additionally, buyers are still postponing their purchases except for immediate needs and for small tonnages.
On the other hand, demand for domestic producers' HRC is also slack. Meanwhile, producers' HRC prices have declined by $10/mt over the past week to $340-350/mt ex-works for November production.
However, Turkish producers are still offering volume discounts of $10/mt and higher, depending on buyer and tonnage. Import HRC offers to Turkey are also putting downward pressure on Turkish producers' HRC prices, while buyers are still postponing their purchases except for immediate needs.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product | Price ($/mt) | |
Eregli | Gebze | |
2-12 mm HRC | 370-380 | 375-385 |
1.5 mm HRS | 410-420 | 405-415 |
2-12 mm HRC (for large volume sales) | 360-370 | |
3-12 mm HR P&O | 420-430 | 435-440 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.