Prices enter downtrend in Turkish stainless steel market

Market sources state that Turkish mills' local offers for prime quality 304/2B stainless steel cold rolled coil (CRC) of 2.0 mm thickness for December production have decreased by $50/mt over the past week to the range of $2,700-2,750/mt ex-works, for December shipments. In the given period, Turkish traders' local stainless steel offers in the spot market have remained stable at $2,750-2,800/mt ex-warehouse. According to market sources, the slack demand in the Turkish domestic stainless steel market has been caused by the reluctance of buyers to replenish their stocks before the New Year. 
 
On the other hand, according to market sources, offers from Turkey to the export markets for the same stainless product have also decreased by $50/mt over the last week and are now in the range of $2,500-2,550/mt ex-works.
 
Market players state that stainless steel exports from Turkey to Russia, which plays an important role in the stainless steel trade, have nearly ground to a halt due to the sharp loss of value of the Russian ruble against the US dollar. However, stainless steel shipments to the Middle East and eastern Europe from Turkey have consistently remained at decent levels. Meanwhile, offers from China and Taiwan to Turkey decreased by $50/mt over the last week to the range of $2,400-2,450/mt CIF.
 
The cash and settlement nickel price at the London Metal Exchange (LME) has increased by $645/mt since December 11, closing the day at $15,505/mt on December 18. Market players state that, considering the fluctuations in advance payment prices for nickel, they are anxious about the future prospects for demand in the Turkish stainless steel market. In addition, some players are anticipating a revival of demand beginning from mid-January and have expressed positive expectations for the whole of 2015.