In the recent Turkish flat steel market, following local flat steel producers' price reductions, traders have also softened their own sales prices. Although these price reductions were expected to revive domestic demand, since this expectation has not materialized yet prices continue to move downwards. While sellers are waiting for steel producers to decrease their prices to more affordable levels before they begin their inventory bookings and continue to sell off their stocks instead for the time being, they are abstaining from booking at price levels above the accepted levels in the market.
Due to sluggish domestic demand, Turkish flat steel producers had headed to the export markets when receiving orders for their April production. And in the current period, when steelmakers are receiving orders for their May production, demand has so far remained below the desired levels, despite the conclusion of some transactions. Turkish integrated steel producer Erdemir is currently offering ex-stock hot rolled coil (HRC) via its web site (www.erdemironline.com) at $780-800/mt ex-works depending on the size and grade. In the meantime, although Erdemir's HRC offers for its May production stand at the base price level of $780-800/mt ex-works, it is reported that, for orders with larger tonnages, offers may be lower than this level. Erdemir's offers for May production 1-1.5 mm cold rolled coil (CRC) stand at $930-940/mt ex-works. Another Turkish flat steelmaker Çolakoğlu Metalürji, on the other hand, is offering May production HRC at $760-770/mt ex-works.
SteelOrbis has heard from market sources that, since Turkish flat steel producers have reduced their export offers, they have concluded some HRC transactions to the southern European market and to the UK. It is also reported that, amid unreleased domestic demand, Turkish mill are seeking to be more active in the export markets.
This week, price declines have prevailed in the Turkish spot flat steel market. In this week's spot market, 2 mm and above HRC offers have been at $740-760/mt, while CRC offers have been at $900-920/mt, both ex-warehouse. In this period, when prices tend downwards, a wide variety of prices are available in the market. In the meantime, some end-users are facing difficulties in supplying large-volume needs and materials in some dimensions, and this shows that in the domestic market inventory levels are low in general.
On the other hand, in the Turkish domestic flat steel market 1-2 mm hot dip galvanized (HDG) offers have been at $885-920/mt, while 0.3-0.5 mm HDG offers have been at $930-1,150/mt, both ex-warehouse. In this period when prices are in some disorder, HDG prices may remain below CRC prices.