Downward pressure increases in local Turkish HRC market

According to market sources, demand in the Turkish hot rolled coil (HRC) spot market is still quiet while prices have remained unchanged during the past week. The political uncertainty in Turkey has come to an end after the November 1 general election and this has boosted sentiment among market players. However, cash flow problems and fluctuations in the US dollar-Turkish lira exchange rate have continued to be seen in the market in the same period. Accordingly, buyers are in no rush to conclude bookings of domestic production HRC.
 
On the other hand, market players expect import HRC prices in Turkey to decline in the coming week compared to the price levels recorded last month, putting pressure on Turkish producers' HRC prices which have declined further by $10/mt in the given period to $320-330/mt ex-works for November and December production. Turkish producers are still offering volume discounts of $10/mt and higher, 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:

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