Price increases find acceptance in Turkish flat rolled steel market

After a break that lasted for months, the Turkish flat rolled steel market has completed an active week. In recent weeks, we mentioned that in particular inventory levels were too low and traders needed to believe that prices would not fall any further, in order for them to start buying again. Especially, hollow section/pipe and tube producers and traders have speeded up their buying activities as further increases are expected to be seen. Even though the tonnages have been limited, end-users were already actively buying. Currently, the transactions are more often concluded by local traders. Traders and producers are expecting prices to move up considerably.
 
Last week,  Turkish flat rolled producer Colakoglu Metalurji was not replying to inquiries and was not accepting any orders. Early this week, the mill announced a $750/mt ex-works base price for hot rolled products for June production. Yesterday, the mill announced it has closed its sales again. Colakoglu is expected to revise its prices further upwards.
 
Erdemir received orders throughout the week for June and filled its order books towards the end of the week. Currently, the mill is receiving orders for July production. The price level for June production hot rolled was at $730-740/mt ex-works base, and for 1-2 mm cold rolled products the price level was $880-890/mt ex-works. The price level for July production has not been declared yet. Erdemir is also expected to increase its price level.
 
In the spot markets, this week the stockists also increased their price levels. Yucel Boru increased its cash price level for hot rolled coils by $10/mt yesterday, and by another $10/mt today. Thus the company has now increased its sales prices by a total of $20/mt in the domestic market.
 
However, the lower end of the price range has not changed much. Generally, sellers are offering $730-775/mt for 2 mm hot rolled coils, and $890-935/mt for 1-2 mm cold rolled coils. In the domestic market, the hot rolled coil price increase is expected to be reflected in HDG prices as well.
 
In April, May shipment import deals mostly by tube and pipe producers have been concluded and the deals were done at around $660-700/mt CFR for hot rolled coils ex-CIS countries. Offer levels are expected to move upwards in May.