Demand still weak in local Turkish HRC market

Demand in the local Turkish hot rolled coil (HRC) spot market has remained at low levels during the past week, while domestic HRC prices have moved sideways in the same period. Market players are still experiencing cash flow problems in the spot market and buyers are only concluding deals in line with their needs amid the fluctuations seen in the US dollar-Turkish lira exchange rate.
 
Meanwhile, Turkish producers' HRC prices have also remained unchanged in the given period at $310-320/mt ex-works for February production. Over the past week, Turkish producers have continued to offer volume discounts, depending on buyer and tonnage. On the other hand, Turkey revised its dumping margins on January 22 in respect of hot rolled coil (HRC) originating in or exported from seven countries, while it also announced new dumping margins of 9-13 percent for Russia which was exempted previously. Accordingly, Turkish steel producers have tried to increase their local HRC prices to test the market. However, Turkish buyers are in no rush to conclude purchases since the final decision in relation to dumping margins has not yet been published in the Turkey's Official Gazette and they have also started to contact alternative suppliers. As a result, the increases seen in local HRC prices have failed to gain acceptance.
 
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:

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