In the Turkish flat steel market, both prices and demand have continued to follow a stable trend. The prices of mills, stockists and distributors have not shown much change when compared to last week. In the current Turkish flat steel sector, local market activity is exerting a greater influence than import offers on price levels.
Varied price levels continue to be heard for materials of different qualities and widths. The continuing weakness of demand is leading some firms to offer their materials at low prices. In particular, hot rolled steel prices have indicated a greater degree of softening as compared to cold rolled prices. This may be attributed to the serious competition between local producers and high inventory levels.
During the current week, Russian mill Severstal's offers have been clarified. Accordingly, Severstal is currently offering hot rolled flat products at $662/mt, cold rolled flat products at $782/mt, hot dip galvanized coils at $897/mt and hot rolled plates at $697/mt. All these offers are CFR FO Turkey, but it is also reported that export allocation has only been made for hot rolled products.
Local flat steel producers in Turkey continue to collect orders. Erdemir is returning to the orders received from the domestic market at the base price level of $620-630/mt for hot rolled coils (HRC) and at $750-760/mt for cold rolled coils (CRC). Meanwhile, Çolakoğlu Metalurji has continued to offer HRC at the base price level of $625/mt when returning to orders from the local market.
Erdemir's return to plate production has started to affect price levels in the Turkish steel plate market. Currently in Turkey, steel plate prices are heard at the level of $650-670/mt for 4-20 mm thickness and at $700-730/mt for 25-40 mm thickness. Erdemir production plates are reported to be standing at more attractive prices than imported materials. However, it is also heard that some producers in the plate market are giving offers at levels which are lower than the general market prices.
Looking at the spot flat steel market, prices have not shown significant changes. Hot rolled (2 mm) and cold rolled (1-2 mm) flat steel products are heard to be at $630-640/mt and $770-800/mt respectively.