Turkish domestic flats market awaits post-election period for further developments

In the Turkish domestic flat steel market, although scrap prices are following a rising trend, the silence of demand has continued to exert pressure on prices. As a result, both producers and sellers are facing difficulties in increasing their prices. In the past week, steel service centers have tried to raise their list prices by $10/mt. However, it is thought that the markets will not accept these price hikes. In the meantime, sellers' low inventory levels are one of the main factors which prevent prices from softening. In the flat steel market, since market players are postponing the formulation of expectations regarding the third quarter of this year until after the June 12 general election in Turkey, the market is rather quiet.
 
In the past week, local flat steel producers' domestic offers have not shown any significant changes. Turkish integrated steelmaker Erdemir is still offering HRC to the domestic market at the base price level of $780-785/mt ex-works, while its 1-1.5 mm cold rolled coil (CRC) prices stand at $910-920/mt ex-works. In the meantime, Turkish flat steel producer Çolakoğlu Metalürji is currently not giving any offers to the domestic market.
 
In the domestic market, traders' prices have continued to remain stable. As for stockists, although they have tried to increase their prices, price hikes have not found acceptance on manufacturers' side. In this week's Turkish domestic spot market, 2-10 mm HRC offers have been at $780-795/mt depending on the thickness of the material, while 1-2 mm CRC offers have been at $910-940/mt and 0.5-0.7 mm CRC prices have been at $950-970/mt - all ex-warehouse.