Buyers in Turkish flat steel market find Chinese offers unrealistic

According to market sources, demand in the Turkish flat steel market has remained quiet during the past week. After the Chinese government's announcement of the easing of mortgage regulations for second home buyers early this week, demand in the local Chinese flat steel market has improved and Chinese export offer prices have increased. However, players in the Turkish flat steel market state that moves by Chinese suppliers to increase prices are unrealistic due to the ongoing declines in iron ore prices, tight liquidity in the local Turkish market, and the ongoing strength of the US dollar against the Turkish lira. Ex-CIS offers have reportedly resulted in deals for small tonnages, while import flat steel offers to Turkey are expected to soften amid declining iron ore prices.
 
Russian hot rolled coil (HRC) and cold rolled coil (CRC) offers to Turkey have remained unchanged over the past week at $405-415/mt CFR and $480-500/mt CFR, respectively. Ukrainian HRC offers to Turkey have moved sideways in the same period in the range of $375-385/mt CFR, while Ukrainian CRC offers to the same destination are currently at $465-475/mt CFR. No new Chinese offers to Turkey on CFR basis have been heard in the market yet, while Chinese HRC offers to the global market are still at $370-390/mt FOB.