Demand in the local Turkish hot rolled coil (HRC) spot market has softened this week due to the Feast of Sacrifice holiday, while domestic HRC prices have remained unchanged over the past week. Market players believe that demand may soften further after the holiday due to the ongoing pressure Turkish steel mills are under due to the attractiveness of Chinese offers. Buyers in the Turkish HRC spot market are cautious about concluding new bookings.
Meanwhile, this week Turkish producers have been receiving weaker demand, while their prices continue to trend in the range of $590-605/mt ex-works, though discount margins have now reached $15/mt depending on buyers and on tonnages. After the holiday, if Chinese offers continue to soften, Turkish mills are expected to revise their prices downward. However, if Chinese offers move sideways, Turkish producers will likely keep their prices unchanged, having already received sufficient orders.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product | Price ($/mt) | |
Eregli | Gebze | |
2-12 mm HRC | 610-620 | 615-625 |
2-12 mm HRC (for large volume sales) | 600-610 | |
1.5 mm HRS | 640-650 | 645-655 |
3-12 mm HR P&O | 650-660 | 660-670 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.