Traders seek to reduce their inventories in Turkish flat steel market

Flat steel demand in the Turkish domestic market has not recorded any improvements, while local steel mills have continued to lower their prices. In the meantime, traders, who seem pessimistic as regards the prospects for the market, have been postponing their orders from mills, and, despite their low stock levels, traders are currently focusing on reducing their inventory levels further. The postponement of purchasing activities has been affecting the market negatively, causing prices to soften further.
 
On the other hand, traders' flat steel offers to the domestic market have declined slightly by $5-10/mt since last week. Even though traders are aiming to maintain their price levels amid limited coil inventories, it seems difficult for them to do so due to the price cuts announced by mills. Meanwhile, buying and selling activity between traders has continued, while liquidity shortages have remained a major problem for demand in the market. 
 
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:

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