With the coming of the New Year, prices have started to increase in the Turkish flat rolled market. Towards the end of the last months of 2006, the beginnings of an increase were observed. However, this incipient increase fizzled out earlier than expected. Some of the factors responsible for this situation may be listed as follows:
- The accident at MMK at the end of November
- The coincidence of the New Year and religious holidays in the same period
- There was no serious fluctuation in raw material and long product prices
On the other hand, the increase seen at the beginning of January seems to have had a strong positive effect on the market. The movements in the supply-demand equilibrium have caused the market to follow an upward trend. Some of the factors contributing to the increase in the prices are as follows:
- The increase of Euro 10-15/ton in HRC and CRC prices in the local European market
- The apparent increase in the local prices in China
- Rising demand in the African continent in general
Prices are not expected to decline in the short run. The factors below are expected to have a positive effect on the market, and the supply-demand equilibrium is expected to cause prices to follow an upward trend.
- The rise in raw material and long product prices
- The absence of the US from the market so far
- The increase in the mills’ capacities
- The increase in demand - Raw material agreements
- The completion of maintenance/revamp works by most CIS producers