Flat prices pick up speed in Turkey and Europe

The strong rise in global flat-rolled prices continues. The fact that the Chinese market was still strong after the holiday, has supported the rise in the global markets. In the Chinese market, demand for hot rolled coil and plate markets in particular is strong. Moreover, with the acceptance of price rises previously announced by the major flat-rolled steel producers, prices have increased further. One of the most important developments in the global market this week was the introduction of an export duty of EGP 160/mt (approx. $28) on steel products by the Egyptian Ministry of Trade and Industry. The move, aimed at reducing prices in the domestic market, has caused a decline of EGP 200-330/mt ($35-58) in prices as a first reaction. It should also be noted that the priority of the Egyptian Ministry of Trade and Industry in taking such a move is to prevent domestic long prices from rising. Hot rolled coil prices in the Italian domestic market have increased more than expected, reaching a level of Euro 490/mt + VAT this week. The price, which represents a rise of almost Euro 20/mt in the space of two weeks, has made Italy more sensitive to the increases in the global markets. A possible rise in the upcoming weeks may accelerate the momentum in the Italian market. The most important and long-awaited development in the Turkish market this week was the price announcement by Erdemir. According to the new price list released by the Turkish producer, the price of hot rolled products has been increased by $40/mt, while the price of cold rolled products is up by $45/mt. On the other hand, the price of plates has been hiked by $30/mt. With the rise in Erdemir's prices, the Turkish market, which has been calm for weeks, is expected to gain momentum. The fact that price differences will emerge between domestic prices and import prices in the Turkish market (due to Erdemir's new prices), as in the past, may cause trade to gain momentum. The increase in plate prices also continues. Plates of 8-20 mm ex-Donetsk Metallurgical Plant (DMZ) mill of Ukraine are being offered at $605/mt CFR Turkey for April shipments, while plates ex-Mittal Steel Galati mill of Romania are being offered at $720/mt CFR Turkey, also for April shipments. Moreover, shipbuilding plates ex-Alchevsk mill of Ukraine are being offered at $675-680/mt CFR Turkey for April shipments, while St 37 plates ex-same mill are being offered at $665/mt CFR Turkey, also for April shipments. Russian producers are expected to announce new prices next week. The general expectation in the market is that the Russian mills will increase their prices further. If the Russian mills do in fact hike their prices, the other CIS mills may be expected to follow suit.