According to market sources, demand in the Turkish hot rolled coil (HRC) spot market has declined further during the past week, with transaction activity stagnating. Market sources state that political uncertainties in the country have negatively impacted Turkey's economy as feared. With the Turkish lira loosing strength against the US dollar and the euro, demand which was already weak, has become stagnant. Meanwhile, prices in the Turkish HRC spot market have remained unchanged over the past week.
On the other hand, domestic producers' HRC prices have remained unchanged at $380-400/mt ex-works during the past week, for September and October production. Turkish producers are offering discounts of $10/mt and higher, depending on the customer and the volume. Meanwhile, demand for domestic producers' HRC is still slack and sales for September delivery are on the weak side against the backdrop of the anticipation of a further decline in global HRC prices and political uncertainties in Turkey. Additionally, local prices have continued to come under pressure amid low-priced import HRC offers and the declines recorded in global HRC prices.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
420-430 |
425-435 |
1.5 mm HRS |
450-460 |
455-465 |
2-12 mm HRC (for large volume sales) |
410-420 |
|
3-12 mm HR P&O |
470-480 |
485-490 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.