Southern European market calm, Turkish flats market seems to gain momentum

The Turkish flats market has started to gain momentum following the recent price announcements made by the CIS mills. Bulgarian steelmaker Kremikovtzi informed the market that its order book for hot rolled coils at $605-610/mt CIF FO Turkey for August shipment has been filled. The fact that the order book of Ukrainian steelmaker Zaporizhstal was filled soon after its price announcement, as well as the completed sales of the tonnage allocated by Russian steelmaker MMK for August shipments, caused Ukrainian steelmaker Ilyich to increase its hot rolled coil price to $545-550/mt CFR Turkey this week.

The calm in the Italian and southern European markets continues to be seen this week. The high stock levels of service centers and end-users' expectations that prices will fall further have been the main factors contributing to the calm state of the southern European flats market. There has been no significant change in price levels this week as compared to last week. Libyan origin hot rolled coils are being offered to Italy at €500-510/mt FOT. On the other hand, Egyptian origin hot rolled coils are being offered to the same market at €490-495/mt FOT.

Although there has been a slight decline in plate prices compared to previous weeks, it seems that slight increases are on the way for this product group.

Till Russian steelmaker Severstal announces its new prices, there may be an increase in the demand for Ilyich production materials in the Turkish market. As a result, the price levels of bookings - which are currently being concluded at $545-550/mt CFR Turkey - may increase. The decline in stock levels in the Turkish market may also bring some activity to the market.