The almost uninterrupted price increases seen in the Turkish domestic flat steel market since November last year have also continued in the first week of the New Year.
During the past week, domestic producers' prices, import offers and spot market flat steel prices have continued to rise. Following the significant price increases in recent weeks, traders and end-users are increasingly questioning the likely duration of this rising trend. The general anticipation suggests that flat steel prices are unlikely to soften or drop.
Floods in Queensland, Australia, the region which supplies almost half of the world's coking coal needs, will impact the world steel markets directly or indirectly. Raw material price hikes and the positive mood in Turkey's industrial sectors, particularly in the auto industry, are expected to continue to provide support for strong domestic flat steel prices.
Today, December 7, Turkish flat steel producer Çolakoğlu Metalürji increased its domestic hot rolled coil (HRC) offers by $20/mt week on week to the level of $740-750/mt. Meanwhile, Turkish integrated steelmaker Erdemir has also revised its prices upwards and is currently offering HRC to the local market at the base price level of $740-750/mt, increasing by $10-20/mt, while its 1-2 mm cold rolled coil (CRC) domestic offers are at $870-880/mt.
As regards imports, the first flat steel offers to Turkey this year came from Russian steelmaker Severstal. SteelOrbis has learned that Severstal's HRC offers to Turkey have increased by $70/mt as compared to the previous month reaching $720/mt CFR, while its CRC offers to Turkey have risen by $20/mt to $830/mt CFR. Steel plate offers to Turkey have also increased. Ukrainian steelmaker Alchevsk Iron and Steel Works is offering carbon steel plates to Turkey at $740/mt CFR for deliveries in March, while Macedonian flat steel producer Makstil is offering steel plates to Turkey at $880/mt CFR, up $45/mt month on month.
After Erdemir's price hike, the Turkish spot flat steel market has also witnessed price increases. During the past week, both steel service centers and traders in Turkey have raised their domestic offers by about $20/mt. With sellers reflecting these increases in their own sales prices, 2 mm HRC prices have reached $740-760/mt, while sales prices of 1-1.5 mm CRC have increased to $860-880/mt, both ex-warehouse.