Despite the low demand in the market, Turkish flat steel prices have continued to increase in the local spot market over the past week. Demand has once gain failed to recover due to the negative financial outlook in the country and the fluctuations in the Turkish lira-US dollar exchange rate. However, producers’ prices have still been trending up and import offers have been moving up also.
"We do not have another option or a cheap alternative. We have to increase our prices accordingly, if we want to renew our stocks. Thankfully, spot market stocks are still low and many traders have not ordered for June-July production because of the high price levels and the weakness of the lira against the dollar. This means we can even see tighter stock availability in June and July, even in August. Most market players consider the current price levels to be not workable, but prices continue to increase," a trader told SteelOrbis.
Local consumers and especially end-users are planning to be careful in their purchases amid the further worsening of the Covid-19 situation in the country and the unclear demand prospects. “Traders also have to be as careful as they are, because if we buy these record-high-priced materials and end-users do not, it is very clear that nobody will be able to finance the stock costs. That is why most of us did not order for June and July production," another trader told SteelOrbis.
Spot prices have increased by $20/mt for HRC and CRC materials, and have not changed for HR pickled materials, week on week.
|
Product |
Price ($/mt) |
|
|
Ereğli |
Gebze |
|
|
2-12 mm HRC |
1,000-1,020 |
1,010-1,030 |
|
1.5 mm HRS |
1,030-1,060 |
1,040-1,070 |
|
3-12 mm HR P&O |
1,100-1,120 |
1,110-1,130 |
|
0.6 mm CRC |
1,350-1,360 |
1,350-1,370 |
|
0.7-2 mm CRC |
1,320-1,330 |
1,320-1,340 |