The prices of imported flats in the Turkish market have started to follow an upward trend. In our analysis titled, “Turkey's import flats market sees slight decrease” dated November 22, 2007, we mentioned that prices had declined, but that, with the sales to be concluded in subsequent days, the actual market levels would emerge and that the market could gain momentum. The momentum in question has emerged with an increase of around $20/mt this week in the price of CIS mills for the Turkish market. Moreover, other CIS mills are expected to announce their new prices next week and these new prices are expected to indicate an increase.
The price of Ukrainian steelmaker Ilyich production hot rolled coils, which was in a range of $575-580/mt CFR Turkey in previous weeks, has increased to a range of $595-600/mt CFR Turkey. There is a boom in demand both in terms of spot sales and orders given for production. Currently, supply for flat rolled materials in the Turkish market is not very high.
Romanian steelmaker Mittal Galati production hot rolled coils are being offered at $630/mt CFR Turkey for January/February production, while the producer's cold rolled coils are being offered at $700/mt CFR Turkey, also for January/February production.
Russian steelmaker Severstal production hot rolled coils are being offered at $645/mt CFR Turkey for late March shipments, while the producer's cold rolled coils are being offered at $735/mt CFR Turkey, also for late March shipments. There has been a correction in the prices announced by Severstal this week. Following the prices initially announced by Severstal for the Turkish market, the producer eventually hiked its prices by a combined total of $25/mt, citing
- the uncertainty in the freight market
- the rise in freight rates
- the strong demand the producer faces.
Following this announcement, Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) and Ukrainian steelmaker Zaporizhstal are next week expected to announce their new prices for Turkish market.