Cash flow problem causes difficulties in local Turkish HRC market

Prices in the local Turkish hot rolled coil spot market (HRC) have remained stable compared to last week, though market players expect to see price decreases in the coming days. Cash flow in the market, where traders have had difficulties in collecting payments for a long time now, has declined significantly since the most recent strengthening of the US dollar against the Turkish lira and this situation has caused serious problems for both buyers and sellers. Besides the expectations that HRC prices, which have been declining for months, will continue their downtrend, the strength of the dollar has prompted HRC buyers to limit their purchases, while sellers are seeking to continue their work by taking minimum risks because of the problems in collecting payments. In this context, local Turkish HRC prices have continued to weaken.
 
Meanwhile, Turkish steel producers' HRC prices have decreased by $10/mt on the lower side and have started to range at $440-460/mt ex-works. Even though producers are trying to keep prices at their current levels and avoid a further corrosion of their prices, this seems difficult to achieve amid decreasing raw material prices and weakening HRC demand.
 
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
 
 

Product	Price ($/mt)
	Eregli	Gebze
2-12 mm HRC	500-520	505-525
1.5 mm HRS	530-550	535-555
2-12 mm HRC (for large volume  sales)		490-510
3-12 mm HR P&O	580-590	595-600

The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.