The Turkish flat steel market is currently characterized by silence due to the general softening in the global markets and the low demand in the domestic market. Price levels in the local market for flat steel products have remained almost unchanged in the last two weeks. While 2 mm HRC prices have been standing at $580-600/mt in Gebze and Iskenderun regions, it is heard that some companies in need of cash may in some cases sell HRC at $550/mt. On the other hand, sales prices of Erdemir production HRC are at present in the range of $600-620/mt in the local market. All prices are ex-warehouse.
Meanwhile, looking at import flats offers, SteelOrbis has been informed that offers given by traders to Turkey for HRC produced by Ukrainian mill Ilyich (which has almost filled its order books for November and December production) have this week increased slightly to $490/mt CFR for December shipment, whereas they were around $470-480/mt CFR last week. It is heard that some traders are still offering at $505-515/mt CFR. Another Ukrainian mill DMZ has sold its November production material at $460/mt FOB, whereas traders' offers to Turkey for DMZ material are at $475/mt CFR. While it is reported that DMZ may carry out maintenance work in December, it is heard that the mill may delay the work in question if demand arises.
On the other hand, it is heard that some Russian mills have started to negotiate for January production. While Russian and Ukrainian producers have in the recent past been forced to lower their prices due to the influence of China, it is mentioned that Russian mills will try to increase their prices for January production material. However, the current low levels of demand will have to be taken into consideration. Another important issue to be monitored is the situation in China. Although prices in China have been increasing, it is not certain whether demand has fully recovered. As regards price levels, Russian HRC offers to Turkey are at $500-530/mt CFR depending on tonnage, whereas some HRC deals have been concluded from Romania to Turkey at $560/mt CFR.
The list prices of Erdemir and Isdemir for the local market still remain unchanged. Erdemir has recently tried to export materials; however, the mill has not accepted bids as prices have been lower than the desired levels. While Erdemir has offered at $550/mt FOB, firm bids have been at $470-480/mt FOB. It is expected that Erdemir will collect bids for January production in mid-November. Having commissioned its cutting and slitting unit, it is expected that Isdemir will now offer not only coils to the local market, but, like Erdemir, also sheet.
On the plate side, traders' offers to Turkey for Ilyich material are at $515/mt CFR, whereas Azovstal plates are being offered by traders at $515/mt CFR Turkey. However, Macedonian steel producer Makstil's plates are being offered by traders at $650/mt CFR Turkey, reflecting a $10/mt decrease compared to last week.