During the past week the Turkish domestic flat steel market continued the upward trend seen in previous weeks. Early this week, after local flat steel producers revised their local offers upwards, traders also increased their sales prices. In almost every region of the country flat steel prices have risen. Although manufacturers are reported to have reduced their bookings as the year draws to a close, it can be said that flat steel suppliers have witnessed better demand than previously expected.
Generally speaking, the current positive mood in the Turkish flat steel market is expected to prevail also in 2011, though some market players think that the price increase trend may be discontinued in early 2011. However, the planned investments in flat steel production and in steel service centers in 2011, as well as ongoing investments in flat steel consumer sectors, including automotive, consolidate hopes for the future of the Turkish flat steel industry.
This week, Turkish flat steel producers have revised their local offers upwards. Early this week, Turkish flat steel producer Çolakoğlu Metalürji increased its domestic hot rolled coil (HRC) offers to the level of $730/mt. The company continues to accept orders for its February production. Meanwhile, Turkish integrated steelmaker Erdemir has also revised its prices and is currently offering HRC to the local market at the base price level of $720-740/mt, while its 1-2 mm cold rolled coil (CRC) domestic offers are at $850/mt, both for late March shipments.
In the Turkish spot market, ex-warehouse flat steel prices have also followed a rising trend. As of this week, 2 mm HRC prices have been standing at $720-740/mt, while sales prices of 1-1.5 mm CRC have been in the price range of $830-840/mt, and sales prices of 0.4-0.6 mm CRC have been at $860-870/mt, all ex-warehouse.