Buyers still cautious in Turkish stainless steel market

As in the previous week, the Turkish stainless steel market has remained quiet again this week due to low demand.
 
With its import-dependent structure, Turkey's major stainless steel import sources are Taiwan, South Korea and Germany. Since stainless steel producers in these countries have been continuously adjusting their prices downwards for a while amid poor global stainless steel demand, Turkish buyers are maintaining their cautious approach, by keeping their purchases at minimum volumes in order to avoid higher inventories. In the meantime, considering that orders placed for Far Eastern stainless steel would arrive to Turkey in two to three months, Turkish buyers are anxious to avoid taking risks given the instability of prices and weak demand, preferring to meet their needs from European steelmakers and traders instead, who offers lead times as short as 15-20 days for ready-stock second quality materials.
 
Besides, the price difference between Far Eastern and European stainless steel offers to Turkey also supports the choice made by Turkish buyers. Accordingly, Far Eastern suppliers' offers for 304 2B stainless steel cold rolled coil (CRC) of 2 mm thickness to Turkey are standing at $2,700-2,800/mt CFR, while European offers to Turkey for second quality 304 2B stainless steel CRC are at $2,600-2,650/mt CFR. In the meantime, sales prices for similar materials in the Turkish domestic market are standing at the price range of $3,100-3,200/mt ex-warehouse.
 
The stainless steel market outlook has remained gloomy as major Chinese stainless steel producers have been curbing their production, as Taiwan's YUSCO has cut its domestic and export prices again for July and as nickel prices are still on a downward trend. On the other hand, as of June 28 nickel prices at the London Metal Exchange (LME) closed the day at $16,375/mt for cash settlement.