This week, the Turkish flat steel market has once again witnessed increased activity. With rising prices and demand maintaining good levels, the market has continued to indicate a positive performance.
Initially, the market had been expected to slow down in the last weeks of this year: unchanged inventories were predicted, while a softening of prices was foreseen. However, the contrary has happened. In the current market, with increased activity due to bookings of both manufacturers/end-users and traders, the hot topic is how long the price increases will continue. In past years, the Turkish flat steel market used to be shaped in line with quotations of imported materials. However, the determining factor for flat prices in Turkey has now become Turkey's own flat steel production. The steep price increases of raw materials, particularly of scrap, as well as the strong trends observed in flat steel offers from Europe and the CIS, have also provided support for increases in the Turkish flat steel market, and the higher price levels have found acceptance throughout the market.
This week, Turkish flat steel producers' domestic offers have increased again. As SteelOrbis has learned from market sources, Turkish integrated steelmaker Erdemir has this week increased its hot rolled flat steel product prices by approximately $20/mt. Erdemir's local offers for hot rolled flat steel products have therefore reached the base price level of $680/mt, while its base price level for cold rolled flat steel products stands at $800/mt. SteelOrbis has been informed that, with this week's newly received orders, Erdemir has already filled up its order book for March production, having previously filled its orders for February production.
On the other hand, another Turkish steel producer Çolakoğlu Metalürji is offering late-January production hot rolled coil (HRC) to the local market at $685/mt. SteelOrbis has heard that the producer is likely to increase its sales prices for February production.
On the import side, Ukrainian steelmaker Ilyich Iron and Steel Works of Mariupol (Ilyich) has concluded HRC transactions to Turkey recently at the price level of $620-625/mt CFR.
With the continuation of flat steel producers' price hikes, spot prices have also increased. SteelOrbis has learned that, this week, spot market prices for 2 mm HRC are standing at $680-690/mt, while the spot price level for 1-1.5 mm CRC stands at $800-820/mt. However, it is also heard that some companies are offering prices below the above levels in order to balance their cash flows.