Significant increase in import offers in Turkish flats market

The Turkish flat steel market has this week seen import offers given by the Russian mills. Russian mills' HRC prices have increased by $70-100/mt as compared to last month. Russian mill Severstal's offers to Turkey have increased by $100/mt compared to last month and are currently standing at the levels of $770/mt CFR Turkey for HRC and at $870/mt CFR Turkey for CRC. Also, over the last week, transactions from Ilyich to Turkey have been completed at price levels of $630-635/mt FOB. Other Russian mills' flats offers to Turkey are heard to be at $740/mt CFR for HRC and at $830-840/mt CFR for CRC.
 
The Turkish flat steel market closed last week with Erdemir's new list price announcement and with increasing prices from local traders in line with Erdemir's new levels. This week, after the clarification of import offers, stockists in the local Turkish market have increased their prices. Generally, it is reported that demand is quiet and local market players are waiting for prices to become firm; meanwhile, major distributors have increased their prices.
 
This week, Erdemir has collected orders for its May production and is expected to return to the orders that were given on April 9. Erdemir and Isdemir's May production is heard to have received a high demand response from the local market and how they will assess this demand will determine the position traders take. Erdemir has not yet returned for its export tender which was opened for 25,000 mt. Erdemir is expected to return to traders' export offers after first supplying orders from its local market.
 
On the demand side, no improvements have been seen which would provide support for prices, but expectations of further price increases may cause the markets to gain momentum. Local market prices are expected to increase due to the increased levels of import offers given this week. As of this week, in the local Turkish flats markets, hot rolled product (2 mm) and cold rolled product (0.5 mm) prices are standing at the levels of $740-770/mt and $880-910/mt, respectively.