Decline replaced by stability in Turkish flats market but demand still sluggish

Last week, despite Turkish integrated steelmaker Erdemir's announcement of increases in its new list prices, significant price declines were experienced in the Turkish flats markets. In previous weeks, similar declines had been observed in other local markets such as for scrap and rebar; however, at that time the local Turkish flats market had offered resistance and flats price levels had remained unchanged. Last week, it had been thought that the market would gain momentum if Erdemir increased its prices. However, end-user demand did not change, and the resistance of the local flats market weakened, with prices indicating a softening last week.
 
In the current week, it may be said that price declines have been replaced by price stability. Prices are seen to be remaining at last week's levels. However, it is still too early to say whether demand has gained momentum. Local sellers have told SteelOrbis that they are worried about the significant price decreases and the lack of improvement in end-user demand. In the context of such concerns, it is possible to hear various price levels in the spot market. Some traders say that it will be difficult for prices to recover unless end-user demand shows a recovery first, while others think that the end-user side may show some small improvement in demand.
 
Erdemir has collected orders for its June production. It is reported that the Turkish flat steel market has not shown much demand for Erdemir's June production.
 
As of this week, in the local Turkish flats market hot rolled product (2 mm) and cold rolled product (1-1.5 mm) prices are standing at the levels of $680-700/mt and $810-830/mt respectively. It is possible to hear lower offer levels than the mentioned ones from some firms that are in need of cash and want to melt down their inventories.