Flat steel price reductions in Turkey trigger limited demand revival

In the Turkish flat steel market, producers' price reductions of approximately $50/mt in recent weeks have caused market transaction activity to revive to some extent, but not as much as expected. The general market uncertainty in March has negatively impacted flat steel demand. However, by April flat steel demand in Turkey is foreseen to revive.
 
This week, Turkish flat steelmakers' domestic offers have remained unchanged as compared to last week, while it is reported that steel producers may be flexible in their pricing for large volume orders. Erdemir is still offering hot rolled coil (HRC) to the domestic market at the base price level of $800-810/mt ex-works, while its 1-1.5 mm cold rolled coil (CRC) prices stand at $940-950/mt ex-works. In the meantime, HRC offers given by another Turkish flat steel producer Çolakoğlu Metalürji to the local market are at the base price level of $790-810/mt ex-works.
 
In line with the price decreases of steel producers, the resistance of spot market prices has weakened and a price softening of about $10/mt has been registered. SteelOrbis has learned that for large volume orders significant discounts may be given, and traders' HRC offers may be as low as $$780/mt ex-warehouse or even lower. In this week's Turkish domestic spot market, 2-3 mm HRC offers have been at $780-790/mt, while 1-1.5 mm CRC offers have been at $910-920/mt, both ex-warehouse.
 
This week, price reductions of both traders and stockists have gained acceptance. On the other hand, it is increasingly believed that the softening tendency in prices may continue in the coming weeks.