Stainless steel purchases in the local Turkish market have slowed down due to rising inventory levels in the past few months and the higher exchange rate of the US dollar versus the Turkish lira. Market players are waiting for April in the expectation of price hikes in the global markets and a recovery in demand.
Meanwhile, Far Eastern offers to Turkey for prime quality ready stock 304/2B stainless steel cold rolled coil (CRC) of 2.0 mm thickness are standing in a wide range of $2,300-2,450/mt CIF Istanbul, while the upper end of this range is for the products of Taiwanese and Chinese mills, which are not in stock yet. Global mills may give discounts of different margins depending on order volumes, whereas offers via Far Eastern traders are available at lower prices for ready stock materials.
Nickel prices at the London Metal Exchange (LME) have been maintaining their strength at levels of $14,200-14,400/mt, while stainless steelmakers' ferronickel purchase prices have moved up, increasing the possibility of higher stainless steel prices on the back of rising production costs.
Meanwhile, stainless steel prices in China, where stainless steel exports continue to increase in 2014, have trended sideways this week, with no increases expected in the short term.