Bulent Saygılı: Raw material prices will not stay weak for a long time

During the panel discussion at the SteelOrbis Market Talks Meeting held in Antakya on October 5, Bulent Saygılı, executive committee member of Turkey-based steelmaker Toscelik, noted that, as a company operating in the region, Toscelik has not been affected by recent developments in Syria, adding that its trade volume with Syria is not that significant.
 
Saygılı stated that the EU cannot compete with Turkey and that the EU does not pose a threat since many plants are about to shut down due to the euro crisis. He also underscored that in particular Italy and Spain's production and sales methods, which do not take costs into consideration, are not sustainable. He said that, if these countries cut production and stop making low offers, prices in the Mediterranean basin will soften and go back to normal levels.
 
A positive market environment should be created for iron ore prices (which have mostly been moving downwards in recent months) to move up, said the Toscelik official, adding that he believes iron ore prices will not stay below $110/mt for a long time.
 
Based on previous years' price trends, scrap prices are predicted to dip in October, however, raw materials are foreseen to start moving upwards in November-December, Saygılı said, going on to say that prices are likely to increase this year as winter approaches. He underlined that producers are keeping stocks at minimum levels because they don't trust the market situation, though in a rising market it will difficult to replenish stocks and producers will not be able to respond to needs immediately.
 
Mr. Saygılı also said that stockists are not stocking up due to expectations of lower prices, while the market is waiting for the period after the Feast of Sacrifice holiday. He pointed out that it is risky to stay below the critical threshold and that stockists should not waste time waiting for much lower prices.