Import prices in the Turkish flats market have started to surface and new increases have been registered. Compared to last month, an increase of around 4.5 percent has been seen in the prices for hot rolled, whereas cold rolled has recorded a rise of 2.5-6.5 percent. We had previously raised the possibility of a price hike in our flats analysis of May 7 entitled "Overview of the Turkish flats market with figures". The latest announced price levels are presented below.
It is expected that Ukrainian steelmaker Ilyich's HRC offers will stand at $1,040-1,050/mt CFR Turkey, with its CRC at $1,140-1,150/mt CFR Turkey, both for late July shipments. As regards last month, Ilyich's HRC prices had varied in a range of $970-980/mt CFR Turkey.
Ukrainian steelmaker Zaporizhstal's HRC offers for Turkey stand at $1,080/mt CFR Turkey, whereas the mill's CRC offers for the same destination are at $1,150/mt CFR Turkey, both for July shipment. Last month's offers from the same producer for HRC were at $1,040/mt CFR Turkey and those for CRC were at $1,100/mt CFR Turkey.
Russian steelmaker MMK production HRC are being offered at $1,130 CFR Turkey, whereas ex-same mill CRC are being offered at $1,180/mt CFR Turkey for late August shipments. The prices in question were hovering at $1,080/mt CFR Turkey for HRC and at $1,150/mt CFR Turkey for CRC last month.
Another Russian steelmaker is offering its HRC at $1,150/mt CFR Turkey and CRC at $1,250/mt CFR Turkey, for August shipments.
The announced price hikes, in particular those of the CIS mills, provide an answer of sorts to the question in most market players' minds, namely, "Will prices see a halt in their uptrend?" The global taxation changes (Iran) (India) and the appearance on the agenda of quota-free supplies of material from Ukraine to the European Union are reasons for the increases in ex-CIS prices.
Following the increase of prices, although demand for Chinese products has surged, ex-China shipments which will take a long time to arrive are a source of worry for buyers against the background of advantageous prices. In addition, it is expected that the Turkish mills will announce a price hike towards the end of the month. No decline is expected in the prices for import products to be shipped to Turkey in the coming month.