As foreseen in our previous market analysis, rises in the prices of both Turkish integrated steelmaker Erdemir and of the CIS mills were seen last week. As of this week, we will start hearing new prices in the Turkish domestic flats market.
Last week's most unexpected announcement came from the Ukrainian steelmaker Zaporizhstal. The mill's HRC offer price for Turkey stood at the level of $1,025/mt CFR Turkey, whereas its offer level for CRC to the same destination has been announced as $1,105/mt CFR Turkey, both for late May/early June shipments.
Russian steelmaker MMK production HRC was offered at the level of $970/mt CFR Turkey, while the producer's CRC was offered at $1,025 CFR Turkey; however, the mill is expected to respond to bids at higher levels than these prices. The prevalent expectation in the market is that MMK's HR material will stand above the level of $1,025/mt CFR.
Ex-Ukrainian steelmakers Alchevsk and Ilyich production shipbuilding plates were offered at the level of $1,170/mt CFR Turkey, whereas the mills' St37 grade plates were offered at $1,150/mt CFR Turkey, both for mid-June shipments. In recent weeks, sales of material from these Ukrainian producers were heard to have been concluded at $1,050/mt CFR Turkey for shipbuilding plate and at $1,000/mt CFR Turkey for St37 grade plate. However, last week shipbuilding plate was sold at the level of $1,170/mt CFR Turkey and St37 grade plate was sold at $1,150/mt CFR. The forthcoming prices are foreseen to stand above the level of $1,200/mt CFR Turkey.
After the price announcements, sales were closed in the Turkish domestic flats market at the weekend. This week sales are expected to resume at the new prices. Taking the pattern of previous years into consideration, the Turkish domestic flats market is expected to gain a little more momentum with the commencement of April.