Early this week, new price hikes were observed in the Turkish flat steel market. Market players indicated that producers' price increases were based on higher raw material costs. In particular, flat steel prices have continued to rise due to the ongoing strong trend of scrap prices. However, since early this week demand is observed to have remained quiet. As mentioned in our previous report, the increased activity in the Turkish flat market resulted from transactions by end-users and downstream industries. As 2010 draws to a close, end-users now seem to have withdrawn from the market to some extent. Traders, for their part, appear to have become more cautious as the year ends, also due to the ongoing price increases.
This week, Turkish flat steel producers have revised their local offers upwards. Early this week, Turkish flat steel producer Çolakoğlu Metalürji increased its domestic hot rolled coil (HRC) offers to the level of $700/mt for February production. Meanwhile, Turkish integrated steelmaker Erdemir is currently offering HRC to the local market at the base price level of $700-710/mt, while its 1-2 mm cold rolled coil (CRC) domestic offers are at $840/mt, both for late March shipments.
This week, offers from Ukrainian steelmaker Donetsk Metallurgical Plant (DMZ) to the Turkish market for January production carbon steel plate have been at $620/mt FOB, while Macedonian steel producer Makstil's steel plate offers stand at $835/mt CFR.
In the Turkish spot market, ex-warehouse flat steel prices have also followed a rising trend. As of this week, 2 mm HRC prices have been standing at $700-720/mt, while sales prices of 1-1.5 mm CRC have been in the price range of $810-840/mt.