Demand has not improved as much as expected in the Turkish flat steel market. Stockists had made purchases in August and in the first weeks of September and it is now mainly their sales to the domestic market which are seen. There were expectations that prices would show increases on the back of anticipated improvements in demand after Ramadan and the summer period. However, these expectations have not exactly been fulfilled.
Last week, traders and stockists predicted that prices could increase in line with the increases expected in mills' offers. However, once again it has been seen that strong support from the demand side is needed for prices to rise. Traders are having difficulties in reflecting the slight increases in mills' offers in their sales prices. Consequently, after the month of Ramadan, expectations of a recovery in the flat steel market continue to be postponed.
Local producers continue to collect orders and to give offers. Erdemir is heard to be returning to the orders received from its local market at $650-660/mt for hot rolled coils (HRC) and at $770-780/mt for cold rolled coils of 1-1.5 mm thickness - both on effective basis. At the same time, Erdemir continues its ready stock sales on its website (www.erdemironline.com). It is heard that some firms are continuing to show interest in these sales. Çolakoğlu Metalurji continues to offer hot rolled coils of 3 mm thickness at the base price level of $645/mt. Another Turkish producer Tosçelik is offering its own production hot rolled coils at the level of $625-635/mt.
The situation in the spot markets is somewhat different. Traders, steel service centers, importers, stockists and end-users are now able to hear different price levels from producers. Differences may not be too big but they may affect trading activities when the profit margin is narrow. Thus, buyers, i.e., demand, continues to determine the prices. Hot rolled (2 mm) and cold rolled (1-2mm) flat steel products are finding buyers at $650-660/mt and $760-780/mt respectively. As mentioned in our previous analysis, it is possible hear different price levels depending on thickness and payment terms.