Insufficient demand, weak local hot rolled coil (HRC) prices and the unstable currency situation have urged Turkish stockists to remain flexible in their spot offers. By the end of this week, some of the local HRC producers have started voicing higher domestic prices, trying to take advantage of relatively stable scrap prices and India’s export tax. However, taking into account slow sales and strong competition in exports, along with the weak domestic trade, most sources believe a rebound is doubtful, at least for now.
“Local buyers' purchasing power has dropped due to daily fluctuations and irregularities in currency rates, as well as the increase in inflation, and so, regardless of how much prices fall or how much discount we offer, buyers in Turkey are now concerned about their own economic situation,” a source told SteelOrbis.
In the domestic spot market, the hot rolled sheet (HRS) price range has narrowed down this week to $900-910/mt ex-warehouse from most stockists, while last week it stood at $900-975/mt ex-warehouse. It is worth mentioning that offers $20-30/mt higher are also heard in the market. In the meantime, a few traders are selling sheets at $860-870/mt ex-warehouse, most probably since they restocked recently at the lowest available price levels in Turkey.
In the cold rolled sheet (CRS) market, most traders are offering around $1,030-1,050/mt ex-warehouse, the same as a week ago. However, some smaller sellers are reported to have been selling at $900-1,000/mt ex-warehouse, in line with some re-rollers as of early this week.
