Flat steel prices in Turkey expected to soften further

In the Turkish domestic flat steel market, major local integrated steel producer Erdemir's recent price has not been followed by other local steel producers, while the spot market has started to react this price cut after a one-week delay.
 
Traders' flat steel sales prices have been below producers' prices for quite a while as part of their efforts to revive slack demand. Along with low demand, this contributed to the above mentioned one-week delay. In the meantime, Erdemir's repair works, which have now been completed, have provided support for market prices, due to the supply shortages seen for certain hot rolled pickled and oiled (HR P&O) and cold rolled coils (CRC). Accordingly, market prices for materials for which certain supply shortages are still observed have been maintained at previous levels, while traders may offer other materials at prices $20-30/mt below actual market prices, depending on their inventories.
 
As of today, in the Turkish flat steel market spot prices for 2 mm hot rolled coil (HRC) are at $690-700/mt, while prices for 3 mm HR P&O are at $700-720/mt, prices of 2 mm hot dip galvanized (HDG) coil are at $880-790/mt and prices of 2 mm cold rolled coil (CRC) prices are standing at $780-800/mt, all ex-warehouse.
 
As of the beginning of the current week, real demand for flat steel has showed no revival, though activity among traders has seen some acceleration. Similar to the steel markets worldwide, end-users in Turkey also think that domestic flat steel prices may soften further in the coming period.