Under the influence of positive news in the last three weeks, including the recovery seen in the industrial index, the uptrend in production capacities and the gradual increase in confidence levels, an awakening is being experienced in the local Turkish flat steel market. The number of people who say that price levels may go up is growing day by day, and the steel service centers and stockists have increased their price in recent days. While the local flat steel market prices are currently showing uptrend tendencies almost all over the whole world, the developments seen in the eastern markets (east of Russia and Turkey: in Iran, India and the Far East) appear to be the main reason behind this uptrend. Due to the rising price trends in these abovementioned markets, many firms have chosen to start buying materials even if the end-user demand is at low levels.
Meanwhile, in the local Turkish flat steel market, the price levels of Erdemir production 2 mm HRC in the steel service markets are at $470-480/mt ex-works, whereas imported HRC prices are at $460-470/mt ex-warehouse. Imported 0.8-15 mm CRC price levels are at $550-560/mt ex-warehouse. It is mentioned in the market that Erdemir has filled the most of its August orders. Also, according to the market players, the producer may announce a price increase in the upcoming week.
Although there are different views as regards the likelihood of the continuation of the price increase tendency in Turkey, thinking that price levels may go up further, many companies have started to buy material. It should be noted that the flat steel market price levels will likely increase when the global recovery begins with the support of current costs i.e., of raw materials. It is believed that the recovery will become more evident in the fourth quarter of the year, not only in industries, but in finance as well in the global markets. However, demand will likely see a downtrend due to two reasons: the holidays from mid-summer on and the beginning of Ramadan on August 22. For this reason, market players should consider these factors when they make their plans.