Sideways trend still continues in Turkish stainless steel market

Thursday, 31 May 2012 17:30:05 (GMT+3)   |  
Stainless steel offers from Far Eastern and European mills and suppliers have continued to decline slightly over the last few weeks, both in their domestic and export markets. With most stainless steel mills expected to announce their prices for June, prices are anticipated to soften further. Even though European stainless steel mills increased their alloy extras this week, as this increase was low and as demand has remained weak stainless steel prices are not likely move up in the short term.

Additionally, nickel and chrome prices which affect quotations of stainless steel have shown different trends. While nickel prices indicate downward movement, chrome prices have increased. Nickel prices at the London Metal Exchange (LME) closed yesterday, May 30, at $16,390/mt for cash settlements and at $16,300/mt for three-month settlement. On the other hand, chrome ore prices have maintained their upward trend.

Meanwhile, offers to Turkey for 304 2B stainless cold rolled coils (CRC) of 2 mm thickness are varying at $2,700-2,800/mt CFR, while prices of this product in the Turkish domestic market have remained unchanged at $3,000-3,200/mt ex-warehouse. However, traders are having trouble collecting deferred payments. While market players believe that stainless steel import offers to Turkey will likely soften further in the coming weeks, they all agree that during the summer the Turkish stainless steel market will witness sluggish demand. Meanwhile, the market is expected to rebound in the last quarter of 2012.  


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