Prices in the local Turkish hot rolled coil (HRC) market have remained unchanged over the past week, while demand is still weak. It is observed that Turkish buyers have continued to postpone their purchases. While the downward pressure continues to be exerted on domestic HRC prices, Turkish steel mills are unwilling to offer lower prices due to high raw material quotations.
However, since the reduction in China’s VAT rate from 16 percent to 13 percent as of April 1 will decrease production costs, buyers are expected to exert further pressure on prices in anticipation of a softening of global flat steel prices.
Market sources state that demand in the local Turkish HRC market is not expected to record any rapid recovery after the local election to be held on Sunday, March 31. Turkish buyers are foreseen to wait to gain a clearer picture of demand from end-users and also of the movement of the Turkish lira-US dollar exchange rate before restarting their purchases. Meanwhile, Turkish HRC producers have kept their domestic stable week on week at $520-540/mt ex-works
As for the spot market, demand is still weak and traders’ prices have remained stable week on week.
|
Product |
Price ($/mt) |
|
|
Eregli |
Gebze |
|
|
2-12 mm HRC |
550-560 |
560-570 |
|
1.5 mm HRS |
590-600 |
595-625 |
|
2-12 mm HRC (for large tonnages) |
540-550 |
|
|
3-12 mm HR P&O |
580-590 |
620-630 |