Over the past week, demand in the Turkish hot rolled coil (HRC) market has been weaker compared to the previous week, while prices have remained unchanged in the same period. Market sources state that Turkish traders are currently reluctant to purchase HRC because they want to avoid building up their stocks ahead of the New Year and believe that the gradual decrease in prices will continue. HRC offers to Turkey are expected to decrease further in the coming period, following the conclusion of an ex-Ukraine deal for 5,000 mt of HRC heard last week.
On the other hand, domestic HRC demand is still weak in the Turkish market. During the past week, HRC offers from Turkish producers to their local market have remained unchanged at $500-515/mt ex-works, for December and January production. Turkish producers expect the current situation in the local HRC market to continue until the end of the first quarter of 2015, while stating that they may succeed in increasing their sales if the purchases of small volumes made from CIS countries decrease.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
560-580 |
565-585 |
2-12 mm HRC (for large volume sales) |
550-570 |
|
1.5 mm HRS |
590-610 |
595-615 |
3-12 mm HR P&O |
605-620 |
615-630 |
The above prices are ex-warehouse and for advance payments, exclusive of 18 percent VAT.