Strike decision could exacerbate availability problems in Turkish flat steel market

Tuesday, 23 July 2013 14:01:17 (GMT+3)   |   Istanbul
Against the background of the ongoing strikes at domestic producers Isdemir and MMK Metalurji, the labor union decision to go on strike at Erdemir as of August 2 has created an atmosphere of panic in the Turkish flat steel market, which still faces low availability. Flat steel traders have been seeking to increase their stocks amid concerns of further availability shortages and this has resulted in improved demand in the local flat steel market.

Meanwhile, as compared to last week, traders have increased their offers by $30-40/mt for hot rolled coil (HRC), by $10/mt for cold rolled coil (CRC) and by $30/mt for hot rolled pickled and oiled (HR P&O). Traders are reluctant to conclude sales at present as it is believed that, if a strike begins at Erdemir, prices will increase further.

The domestic sales prices of traders for local and imported hot and cold rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:

 Product

Price ($/mt)

Eregli

Gebze

2-12 mm HRC

620-625

620-630

1.5 mm HRS

645-660

655-670

3-12 mm HR P&O

670-680

675-695

0.6 mm CRC

765-775

770-775

0.7-2 mm CRC

740-750

745-750

The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.

Weekly price movements of different steel products in major markets can be viewed comparatively in the SteelOrbis Historical Steel Prices section. Market trends can thus be seen more clearly, while desired charts can be created and used in reports or presentations.   


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