Given the recent downturn in the hot rolled coil (HRC) market following the holiday and also the lack of demand, Turkish flat steel spot traders have decided to bring down their offer prices. According to reports, although bigger traders want to limit their price decreases, medium and small-sized traders have chosen to cut prices down to near HRC prices even if this results in financial losses. The reason for medium and small traders being more aggressive are buyers' expectations for lower prices, and without decreases or discounts very little trade is observed, which also results in losses.
“We are confused about what to do because the price at which we sell the sheets is nearly the same as the HRC price we paid. HRS normally should be at $650/mt ex-warehouse, but we are selling it at a loss at $620/mt ex-warehouse,” a medium-sized trader told SteelOrbis
Over the past week, prices for domestic hot rolled sheet prices have decreased by $15-20/mt to $620-635/mt ex-warehouse. According to reports, bigger traders are offering at around $630-635/mt ex-warehouse, and smaller and medium-sized traders are selling at around $620-625/mt ex-warehouse. Currently, Turkey’s official HRC prices in the domestic market are at $590-600/mt ex-works.
On the other hand, in the cold rolled sheet market, most traders are offering at around $760-780/mt ex-warehouse, versus $770-780/mt ex-warehouse last week.
