The perception amongst buyers that domestic hot rolled coil (HRC) prices in Turkey have bottomed out and will start to move up has strengthened over the past week amid the end of the downtrend of global flat steel prices, the increases in global scrap quotations and also as iron ore prices have remained above the $70/mt mark. Accordingly, buyers have accelerated their purchases before any possible increase in prices. It is observed that Turkish buyers’ demand for import flat steel has also increased slightly in line with their higher demand for domestically produced products. Market sources expect the positive mood in the global steel market to continue until the Chinese New Year (February 2-10), with import flat steel prices in Turkey also foreseen to move up, though the recovery of demand is expected to remain limited due to the ongoing problems seen regarding cash flow and credit in Turkey against the backdrop of the negative economic outlook.
Under the current circumstances, ex-CIS HRC offers to Turkey have increased by $10/mt week on week to $465-490/mt CFR, while cold rolled coil (CRC) offers from the CIS region to Turkey have moved sideways in this period at $545-565/mt CFR.