Weak stainless steel demand in Turkey expected to recover with the New Year

Stainless steel demand both in the Turkish domestic market and in the international markets has remained sluggish during December. However, end-user demand for stainless steel is anticipated to gain strength in 2013, with stainless steel consumption thus likely to increase.
 
Meanwhile, nickel prices, which have not dropped below early December price levels, have been at around $17,500/mt in December. Stainless steel producers have received support for their offers from the stability of nickel prices at current levels. In the meantime, some stainless steel mills in the global markets have revised their January prices upward. Accordingly, Chinese producers' export stainless steel offers for 304 grade 2 mm thick material have moved up by $50/mt as compared to previous levels, while Taiwanese steelmakers are expected to announce their January prices early next month. On the other hand, European mills will likely increase their base prices for February by around €20-30/mt ($26-40/mt).
 
Import stainless steel prices in Turkey are still at about $2,700-2,800/mt CFR. Meanwhile, Chinese and Taiwanese traders are giving more aggressive offers for second quality materials from ready stocks, amid stagnant demand. Turkish market players prefer to buy ready stocks rather than new production materials, as lead times are shorter. 
 
€1 = $1.32