During the past two weeks, demand for import flat steel in Turkey has remained at low levels. It is observed that Turkish steel mills have continued to conclude purchases only in line with their needs. On the other hand, the fire at Russia-based MMK has negatively impacted the mill’s hot rolled coil (HRC) production, and SteelOrbis has been informed that MMK is trying to cancel some of its previously received orders. Additionally, Ukrainian-based Metinvest has announced that it will not give HRC offers to the international markets since it will cut its production capacity utilization rate due to maintenance and renewal works. As a result, the fall recorded in ex-CIS HRC supply has caused other producers to increase their offer prices. As ex-CIS flat steel offers to Turkey have also moved up, Turkish buyers are rejecting the new price levels for now. Market sources state that demand for import flat steel in Turkey is not expected to recover in the short term amid the traditionally slow summer season and the negative outlook for Turkey’s economy.
Under the current circumstances, ex-CIS HRC offers to Turkey have increased by $15/mt week on week to $500-520/mt CFR, while cold rolled coil (CRC) offers from the CIS region to Turkey have increased by $10/mt week on week to $575-600/mt CFR.