Local Turkish flat steel spot prices continue to fall

Prices have continued to decrease in the Turkish flat steel spot market for the past two weeks due to low demand. Despite the rise in mills’ offers for hot rolled and cold rolled coils, flat steel spot prices have decreased by $10/mt over the past two weeks. Additional discounts are available depending on the tonnage and payment terms, market participants report. “We have really sluggish demand and uncertainty in the market. Increases in Turkish HRC prices did not affect the spot market because many traders have been trying to increase cash flow and to minimize their stocks. Stocks are still high because the products from long-term contracts are now being sold as spot due to the fall in consumption,” a trader told SteelOrbis.

Traders state that low demand for flats in Turkey has been the key reason, restraining upward price moves. In addition, the currency fluctuations impact the trade activities greatly, sources say. “Buyers know we have sufficient stocks and they are not willing to pay more in this chaotic environment. We are giving discounts mainly according to payment terms, with cash payment a buyer can buy at even a $30/mt discount today,” a trader said. “Everybody in the market has to consider even small gains in this period,” another market participant told SteelOrbis.

Prices are for prompt delivery and advance payment.