Turkish domestic flat steel market remains slow amid weak demand

In the Turkish domestic flat steel market, local producers' hot rolled coil (HRC) domestic offers, which have reached $640-670/mt ex-works for March rolling following gradual price hikes beginning from mid-December last year, have failed to gain acceptance in the local market.
 
In the domestic market, local producers Erdemir and Colakoglu Metalurji are offering HRC at the price range of $660-670/mt ex-works, while MMK Metalurji  based in Iskenderun has issued its domestic HRC price this week at $640/mt ex-works. However, producers have failed to attract demand for their offers, which have been maintained at the same levels since the beginning of this month.
 
The declining trend seen in scrap prices, coupled with weak domestic flat steel demand and slow transaction activity, has caused buyers to anticipate a softening in flat steel prices, leading them to behave cautiously and abstain from bookings of larger tonnages. Market players emphasize the important influence of raw material prices on flat steel prices, stating that the raw material price trend in February will also affect flat steel prices in the coming period.
 
In the meantime, domestic spot prices in the Turkish flat steel market have continued to follow a sideways trend. Accordingly, spot prices for HRC of 2 mm and above thickness have been at $650-670/mt, while 1-2 mm cold rolled coil (CRC) prices have been at $760-800/mt, both ex-warehouse and for advance payments. Nevertheless, amid weak demand, it is known that some transactions are being concluded at $10/mt below these price ranges.