Tepid demand continues to exert pressure on Turkish flat steel market

Friday, 15 April 2011 16:15:14 (GMT+3)   |  
       

The Turkish flat steel market has again witnessed tepid demand this week. The ongoing downward movement of flat steel prices in the domestic market has continued to affect buyers' attitude as regards the conclusion of new purchases. While traders and end-users are expected to begin buying soon due to their low inventory levels, bookings are expected to start once it is accepted that prices have reached their bottom point. As well as the reduced import offer prices in the Turkish flat steel market, the ongoing softening in scrap prices also increases the psychological pressure on players in the market.
 
Turkish domestic flat steel producers have maintained their local offers at their previous levels. Accordingly, Turkish integrated steel producer Erdemir is still offering hot rolled coil (HRC) to the domestic market at the base price level of $730/mt ex-works, while its 1-1.5 mm cold rolled coil (CRC) prices stand at $890/mt ex-works. In the meantime, HRC offers given by another Turkish flat steel producer Çolakoğlu Metalürji to the local market are at the base price level of $750/mt ex-works.
 
In the Turkish domestic spot markets, although the weakness of demand still prevails, prices have remained almost unchanged. However, the stable price trend should not be interpreted as a sign that prices have stopped falling or that they will begin to increase. SteelOrbis has learned that in this week's Turkish domestic spot market HRC offers have been at $730-770/mt depending on the thickness of the material, while 1-2 mm CRC offers have been at $890-930/mt, both ex-warehouse.
 
On the other hand, on April 9, members of Turkey's Association of Flat Steel Importers and Manufacturers (YISAD) gathered together in Eskisehir, where they had the opportunity to assess the current market situation. At the meeting, the consensus among members was that the Turkish flat steel industry will soon recover from its current sluggishness and will become healthier and stronger on the back of new investments.

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