According to market sources, demand in the Turkish hot rolled coil (HRC) spot market has increased slightly during the past week, though it is still considered to be weak. Market sources state that buyers are postponing their HRC purchases due to ongoing political and economic uncertainties in the country. Moreover, cash flow problems in the market have worsened with the Turkish lira losing strength against the US dollar and the euro. Meanwhile, prices in the Turkish HRC spot market have declined by $20/mt over the past week.
On the other hand, downward pressure on domestic producers' HRC prices has continued during the past week, with prices declining by $10/mt in the same period to $370-390/mt ex-works. Turkish producers are offering volume discounts of $10/mt and higher. Meanwhile, demand for domestic producers' HRC is still slack and buyers are postponing their purchases against the backdrop of the anticipation of a further decline in global HRC prices.
Additionally, a Turkish steel pipe producer has concluded a deal in the local market for a large HRC tonnage at $350/mt ex-works.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
400-410 |
405-415 |
1.5 mm HRS |
440-450 |
435-445 |
2-12 mm HRC (for large volume sales) |
|
390-400 |
3-12 mm HR P&O |
450-460 |
465-470 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.