Local Turkish HRC prices likely to increase

Over the past week, demand in the local Turkish hot rolled coil (HRC) market has increased slightly, while producers’ prices have remained unchanged at $520-540/mt ex-works. Due to the positive sentiment which has started to prevail in the market since the US reduced the 50 percent duty on Turkish steel imports to 25 percent as of May 17 and since global iron ore prices have increased sharply, buyers in Turkish HRC market - especially pipe and coated steel producers that use HRC as raw material - have increased their bookings. According to market sources, demand from end-users is not expected to recover in the coming period due to the negative economic situation in the country, the approach of the summer season and the Ramadan period. However, domestic HRC prices in Turkey may increase in the short term amid predictions that Turkish HRC exports to the US will increase and with support from increased bookings in the domestic market since last week, according to market sources.

As for the spot market, demand has also remained slack, while prices of traders have remained stable.