Local Turkish HRC market under downward pressure from cheaper imports

According to market sources, demand in the Turkish hot rolled coil (HRC) spot market is still slack this week. During the past week, both HRC and hot rolled pickled and oiled coil (HR P&O) prices have remained unchanged but there are still expectations of a downward movement in prices amid low-priced import offers. Meanwhile, cash flow problems as well as fluctuations in the US dollar-Turkish lira exchange rate have continued to be seen in the market during the past week. Accordingly, buyers are still reluctant to conclude deals except for immediate needs.
 
On the other hand, following purchases in the market of cheap HRC imports over the past week, Turkish producers' HRC prices have declined by $5/mt in the given period to $335-345/mt ex-works for November production. Turkish producers are still offering volume discounts of $10/mt and higher, depending on buyer and tonnage. Turkish buyers still expect import HRC prices to fall further, thereby increasing the downward pressure on Turkish producers' HRC prices. Accordingly, demand for locally produced HRC is currently at weak levels.
 
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:

The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.