This week, local retail flat steel prices have fallen further, but the outlook is ambiguous. Despite the appearance that prices would rise due to the increase in scrap prices, market and business activities remain difficult due to a lack of demand and the seasonal slowdown. Furthermore, the continuing economic troubles in Turkey, as well as global inflation, are decreasing the purchasing power of buyers and traders who are attempting to sustain their business activities.
Workable domestic hot rolled sheet (HRS) prices are currently settled at $670-715/mt ex-warehouse, a $5-30/mt decrease from last Friday. Despite a considerable decline in HRS prices, there is an expectation for a possible trend reversal. Stronger scrap prices in the most recent import deals are foreseen to push finished steel prices up also. Some local HRC producers have already started voicing $660-670/mt ex-works, but buyers believe that for now $630-650/mt ex-works levels are still possible as the demand for flats is still weak.
Most traders in the cold rolled sheet (CRS) market are offering at $750-830/mt ex-warehouse, compared to $800-850/mt ex-warehouse last week. This week, the smaller traders and re-rollers are heard to be selling aggressively at $740/mt ex-warehouse. According to some sources, these suppliers may be able to sell cheaply in order to get rid of excess stocks that were most likely bought a long time ago. However, some larger mills are attempting to sell at $870/mt ex-warehouse, which is not feasible in the present conditions.