Prices in the local Turkish flat markets have this week started to increase for several reasons: demand has started to improve in the domestic market, and a tightening of supplies has started to be observed since stocks are now at low levels. The rising prices in the local Turkish market have also been triggered by the increase in import offer levels given from Russia and Ukraine. Also, it is expected that Erdemir will increase its price level for HRC, which currently stands at $430/mt ex-works, excluding VAT.
Erdemir raised its export prices by $50/mt on average in the last week: its HRC prices rose to $450/mt, CRC to $510/mt and HDG to $560/mt. All prices are on FOB basis.
Ex-Russia HRC offers are currently at $475-485/mt CFR Turkey, up by $60-70/mt compared to May. Additionally, ex-Russia CRC offers are currently at $25-535/mt CFR Turkey. Ex-Ukraine HRC offers were at $420-445/mt CFR Turkey last week. Ex-Russia and ex-Ukraine offers are showing an uptrend due to the relative fullness of order books. It is observed that ex-CIS flat steel offers to Europe, the Far East and Middle East are on an uptrend. For example, ex-Russia HRC offers to Europe are at €360/mt CFR southern Europe, at $495/mt CFR China and at $490-510/mt CFR Middle East. In fact, supply and demand is determining developments in the flat steel market in general.
Meanwhile, after its latest HRC deal at $500/mt FOB, the Egyptian producer EZDK is not giving any more export offers for the time being.
On the plate side, contrary to HRC, no such price uptrend is being observed as demand for plate is at lower levels. Ex-Ukraine plate offers to Turkey have this week been at $420-450/mt FOB.
In conclusion, rapid upward momentum has been observed in the Turkish import flat steel markets in June thanks to the factors outlined above.