This week price levels have increased in the local Turkish flats market due to the strengthening of demand, lack of material and the expectation of an increase in ex-CIS offer prices.
Erdemir increased it prices by $30/mt on June 30, after it had increased prices by $20 on June 25. According to the producer's list prices, the HRC base price level is at $480/mt, the CRC base price level stands at $530/mt while the HDG base price level is at $600/mt, all ex-works and excluding VAT. Also, Erdemir this week sold excess stock via its website, Erdemir Online.
In the local Turkish flat market, in Marmara the price of 2 mm HRC has increased to $650/mt excluding VAT, whereas 0.7 mm CRC has risen to $740/mt; both prices are for 60-day deferred payments.
Meanwhile, Turkish producer Isdemir will deliver its orders as of late July. Additionally, import deals to Turkey will start to arrive in the same time period. Although the arriving materials will help relieve the supply tightness in the market somewhat, it seems that the shortage of materials will likely continue for another while. As end-users currently seek materials in order to meet increasing demand, they are experiencing difficulties in finding certain sizes in CRC and galvanized in particular.
Although Russian producers' price levels for August are not certain yet, it is thought that their price levels in offers to Turkey will likely be at $540/mt CFR and above in August due to their low production levels for the same month. This expectation has caused local Turkish market price levels to increase by $40/mt this week. Although Ilyich is not offering for new production yet, the price level of its ready stock material has this week increased to $480/mt CFR Turkey from last week's $445/mt CFR. However, it is heard that firm bids have been at $470/mt.
In conclusion, on account of a number of factors - lack of material, improved demand, the rising outputs of CIS producers and the expectation of a rise in ex-CIS offer prices - price levels have this week registered a sharp increase in the local Turkish flats market.