Turkey's import flats market sees slight decrease

- Import duty on flats in Turkey is five percent. However, if the five percent duty collected is below €29, then a minimum duty of €29 per ton is applied. The import duty is effective for both hot rolled and cold rolled flat steel products (for llyich, Zaporizhstal, Severstal and MMK).

The most remarkable feature in the new prices announced by the CIS mills for shipment to Turkey is that Russian steelmakers have reduced their prices, while Ukrainian mills have not decreased theirs.

Last month, Russian steelmaker MMK announced its HRC price at $650/mt CFR Turkey, while it announced its CRC price at $700/mt CFR Turkey, for January shipments. However, the producer completed its sales at prices $20-30/mt lower than the prices it announced. We see that the producer's new prices indicate a decline of $20/mt both for HRC and CRC. With the conclusion of sales in the coming weeks, the actual market levels will become clear.

Similarly, Severstal, another Russian steelmaker, announced its HRC price at $665/mt CFR Turkey, while it announced its CRC price at $695/mt CFR Turkey, for January shipments. However, the new prices announced by the mill indicate a decline of $30/mt for HRC, while they indicate a rise of $5/mt for CRC.  The rise in CRC prices is attributed to the increase in freight rates.

With regard to Ukraine, there aren't many changes in the prices recently announced by Ukrainian mills. It is heard that a spot sale for hot rolled coils ex-Ilyich mill of Ukraine was concluded to Turkey at around $580/mt CFR LO Turkey.

Bulgarian steelmaker Kremikovtzi production hot rolled coils are being offered at $640/mt CIF LO Turkey for February shipments, while the producer's hot rolled sheets are being offered to the same destination at $655/mt CIF LO, also for February shipments. The CR materials of this producer are still out of the Turkish market. Moreover, it is said that there is a problem regarding the shipments of previously booked orders.

The market may witness some purchases in the coming period. The reasons for this expectation are;

- Certain stockists and importers think that prices have already bottomed out

- The expectations that prices will increase in the first quarter of 2008 have strengthened

- The materials booked recently will arrive in late January/early February

On the other hand, another expectation is that the prices will bottom out in late December and that actual sales will emerge then.