Prices move sideways in Turkish flat steel market

Expectations for a recovery in the Turkish flat steel market after the general election held on June 12 now seem to have been postponed. Although the lack of improvement in flat steel demand in Turkey poses difficulties for traders, market prices have remained unchanged. From the end-user side, it is reported that these buyers are facing difficulties in obtaining supplies of material from the market due to low inventory levels. On the other hand, producers have also maintained their flat steel offers at their previous levels, since there has not been any significant change in raw material costs, and also due to sluggishness of demand. However, market players have told SteelOrbis that they think some erosion of flat steel prices has started to be observed in Turkey this week.
 
Coming to the end of the current week, it is reported that Erdemir has filled its order books for August production. For the last bids for August production, Erdemir's hot rolled coil (HRC) offers were at the base price level of $785/mt, while its 1-1.5 mm cold rolled coil (CRC) offers were at $920-930/mt, both ex-works. In the meantime, continuing to respond to HRC orders through its Iskenderun-based subsidiary Isdemir during the current week, Erdemir will reportedly keep its HRC price for September rolling at the same levels as for August production.
 
In this week's Turkish domestic spot market, mainstream HRC offers have been at $780-805/mt, while CRC offers have been at $920-950/mt, both ex-warehouse. However, due to weak demand, most transactions have been concluded at the lower end of these price ranges. In the meantime, prices $10-20/mt lower are also available in the market.