Flat steel demand in the Turkish domestic market has not recorded any improvements, while supply shortages have been observed for high grade products. Since traders have been postponing their orders from mills and have been trying to reduce their stock levels, which are already at low levels, there is limited availability of high grades in the market, though no significant shortages of stocks of commercial grades have been registered.
Traders' attempts to reduce stock levels have prevented market prices from declining further, and so their prices have remained stable since last week. Meanwhile, traders also indicate that there are serious trust issues going on in the market, and they believe conducting business with unfamiliar customers will make the financial outlook of the market even worse, especially with demand on the weak side and prices trending downward.
On the other hand, following the decreases in stock levels this week, local steel mills have been trying to push up their prices, as they are expecting buyers to start concluding deals soon. If this move by the mills gains acceptance by buyers, market prices could start to move up. Meanwhile, buyers, who are not sure about the price trend in the market, will likely concluding purchases if prices start to increase.
The domestic sales prices of traders for local and imported hot and cold rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product | Price ($/mt) | |
Eregli | Gebze | |
2-12 mm HRC | 635-640 | 635-640 |
1.5 mm HRS | 670-675 | 670-675 |
3-12 mm HR P&O | 670-675 | 670-675 |
0.6 mm CRC | 760-770 | 765-770 |
0.7-2 mm CRC | 740-745 | 740-745 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.