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.
On the other hand, demand for Turkish producers' HRC products has been slack over the past week, while Turkish producers' HRC prices have also remained unchanged in the given period at $310-320/mt ex-works for February production. Meanwhile, Turkish producers continue to offer volume discounts, depending on buyer and tonnage. On the other hand, market sources have given different reports about the price trend. Some market sources state that Turkish producers have tried to increase their domestic HRC prices by around $10/mt due to the stability of import HRC offers to Turkey, while other market sources report that demand in the local Turkish HRC market has been slack and that there are offers in the market which are $5-10/mt lower than the abovementioned range for producers' prices. This is seen as a reflection of the weakness of demand and market sources believe that, despite Turkish producers' efforts to increase their prices, an upward movement in prices appears unlikely.
Meanwhile, foreign suppliers have kept their HRC prices for Turkey stable for February production, but volume discounts of around $5/mt are still heard to be available in negotiations, depending on buyer and tonnage.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
340-350 |
345-355 |
1.5 mm HRS |
380-390 |
375-385 |
2-12 mm HRC (for large tonnages) |
330-340 |
|
3-12 mm HR P&O |
380-390 |
395-400 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.