Demand in the Turkish hot rolled coil (HRC) market has remained at low levels during the past week. Turkish buyers are concerned bh the current economic situation in Turkey and are avoiding purchases except to meet their immediate needs. Additionally, Turkish buyers continue to exert downward pressure on flat steel prices as the import quotas (as well as the 25 percent duty for tonnages in excess of the quotas) determined by the Turkish government are not expected to be exceeded because imports from developing countries cannot be restricted by the rules of the International Trade Union, and also due to the exemption of the import products purchased within the scope of Turkey’s inward processing regime (under this scheme mills have to give a commitment to export the finished products they produce from imported goods). Market sources expect demand in Turkey to remain weak in the short term, while the current downward pressure on flat steel prices is also foreseen to continue.
Under the current circumstances, ex-CIS HRC offers to Turkey have decreased by $10/mt over the past week to $550-570/mt CFR. In the given period, ex-CIS cold rolled coil (CRC) offers to the same destination have remained stable at $620-630/mt CFR.