Slow flat steel transaction activity in Turkey ahead of election and summer holiday

Two weeks ago in the Turkish domestic market, scrap and long steel prices were trending upwards and initial expectations suggested that the scrap price hikes would also push up flat steel producers' prices. However, despite these expectations, flat steel prices in Turkey have remained stable in general. In the meantime, due to slack demand and the approach of the general election on June 12, transaction activity in the Turkish flat steel market has slowed down. While anticipations differ as regards the post-election period, no significant change in flat steel prices is expected until the end of the current month.
 
Turkish integrated steelmaker Erdemir is still offering hot rolled coil (HRC) to the domestic market at the base price level of $780-785/mt ex-works, while its 1-1.5 mm cold rolled coil (CRC) prices stand at $910-920/mt ex-works. In the meantime, Turkish flat steel producer Çolakoğlu Metalürji is currently not giving any offers for new production to the domestic market while it continues to conclude sales of ready stock material.
 
 In the past week, Russian flat steel producers have revealed their offers for the Turkish market, keeping their HRC offers unchanged. Accordingly, the Russian steel producer Severstal is offering HRC to Turkey at $745/mt CFR, while it has pushed up its CRC offers by $10/mt to $890/mt CFR. In the meantime, Magnitogorsk Iron and Steel Works (MMK) is offering HRC to Turkey at $735/mt CFR for July rolling. However, it is reported that Turkish buyers' counter offers have remained below these price levels.
 
The situation is also similar for the Turkish domestic spot market. Although inventories are low, due to weak demand, the approaching summer holiday after the election and Ramadan at the end of summer, market operators are delaying their flat steel purchases for the time being. Besides, traders and end-users with spot material needs state that they are unable to find material with the specifications they need. In this week's Turkish domestic spot market, 2-2.5 mm HRC offers have been at $780-800/mt, while 1-2 mm CRC offers have been at $920-950/mt, both ex-warehouse.