In the Turkish domestic flat steel market, last week's price cuts for hot rolled and cold rolled coils (HRC and CRC) were insufficient to revive demand. Although supply shortages persist in the market, prices continue to soften in the local market.
In past months, finding prices on the high side, traders and end-users in Turkey had not placed any orders for hot rolled pickled and oiled coils (HR P&O). Moving to the present, although supply shortages have emerged for HR P&O, this has not caused any surge in prices. Besides, market players still think that they were right not to have placed any orders at higher prices previously. Hence, the general opinion is that, even if they had bought HR P&O at higher prices, they would not be able to sell these materials now, despite the supply shortage.
Last Friday, May 25, HRC prices in the Turkish domestic market softened further by about $10-20/mt. However, in the previous two weeks, for larger volume orders discounts at similar levels were already available in the market.
In the Turkish domestic market, the current week started with the evaluation of recent price cuts and with poor demand. As of today, May 28, HRC prices are standing at $650-660/mt, CRC prices are at $770-785/mt, while HR P&O prices are standing at the range of $690-700/mt and hot dip galvanized (HDG) coils are at $770-790/mt, all ex-warehouse, exclusive of 18 percent VAT.
After selective discounts for HRC have become widespread in the market, market players are now waiting for similar discounts for CRC and HDG. In the meantime, no price change is expected for HR P&O, due to ongoing supply shortages.