Stagnation still predominates in Turkish flat steel market

The Turkish flat steel market has continued its weak trend, influenced by the quietness in end-user demand. The price downtrend of recent weeks and stagnation in activity are still observed.
 
Finished product prices have not shown significant changes in Europe, while continuing sluggishness in finished product demand have made it difficult for prices to maintain their levels in the local Turkish markets, with prices consequently decreasing. New investments have started to show their effect in the Turkish flat steel market. In the local market, following Erdemir and Tosyali, Colakoglu has also started to produce flat steel products. Colakoglu's hot rolled product prices are reported to be at $610/mt. Erdemir was offering HRC at levels of $660-670/mt last week but the Turkish flat steel market did not show much demand for Erdemir's offers. Erdemir has this week returned to orders at the price level of $640/mt. Market players are now wondering how the local market will respond to this offer level.
 
A slow trend also continues on the import side. Ukrainian flats mill Ilyich has filled its order books for June production and has started to offer its July production HRC at the price level of $550/mt FOB, while ready stock material offers to Turkey have declined to the level of $560/mt. Russian mill MMK's HRC offers to Turkey stand at $600-610/mt CFR, while another Russian mill Severstal's offers are at the base price levels of $580/mt FOB St. Petersburg.
 
Market players in the Turkish flat steel market are getting used to hearing various price levels. It is expected that prices may decline further and that a variety of price levels may be heard as long as demand continues to be quiet. As of this week, in the local Turkish flats market hot rolled product (2 mm) and cold rolled product (1-1.5 mm) prices are standing at the levels of $610-630/mt and $730-770/mt respectively.