The perception that domestic hot rolled coil (HRC) prices in Turkey have bottomed out and will start to move up has strengthened over the past week amid the end of the downtrend of global flat steel prices, the increases in global scrap quotations and also as iron ore prices have remained above the $70/mt mark. Having kept their inventories at very low levels for a long time, Turkish buyers have accelerated their HRC purchases before any possible increase in prices. Due to the higher demand, domestic HRC prices in Turkey have moved up by $20/mt week on week to $490-520/mt ex-works. Market sources state that the positive mood in the global steel market is expected to continue to prevail at least until after the Chinese New Year (February 2-10). While import HRC offers to Turkey have increased in the given week, higher Turkish HRC export offers have gained acceptance from buyers in the European Union countries. Under the current circumstances, market players think that domestic HRC prices in Turkey may increase further in the coming days.
Meanwhile, purchases in the Turkish spot market have recovered slightly during the past week, though the acceleration has been limited due to the negative economic outlook. Turkish traders’ spot HRC offers have increased by $10/mt as compared to last week.
|
Product |
Price ($/mt) |
|
|
Eregli |
Gebze |
|
|
2-12 mm HRC |
520-530 |
530-540 |
|
1.5 mm HRS |
560-570 |
575-595 |
|
2-12 mm HRC (for large tonnages) |
|
510-520 |
|
3-12 mm HR P&O |
550-560 |
590-600 |