Turkish flat steel market remains sluggish with stable prices

This week, the Turkish flat steel market was more stagnant as compared to recent weeks. Early this week, end-user demand slowed down amid anticipation of a price hike by producers. The national holiday on May 19 also contributed to the sluggishness of the market.
 
In the last two to three weeks, the Turkish flat steel market had been more active due to inventory replenishments. However, speculation concerning a possible imminent price hike, the strengthening of the US dollar versus the Turkish lira and the slowing down of Turkish mills' scrap bookings have led traders to find current prices to be on the high side for inventory replenishments.
 
Last week, Turkish integrated mill Erdemir was expected to increase its prices by early this week and traders tried to reflect this anticipation in their own sales prices, but they were unable to gain acceptance for the higher prices. Indeed, Erdemir has still not increased its prices. Erdemir is still offering hot rolled coil (HRC) to the domestic market at the base price level of $785-790/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 opened its HRC sales again this week, starting to offer HRC to the local market are at the base price level of $800/mt ex-works.
 
In Turkish domestic spot market, there has not been any significant changes this week. In particular, the strengthening of the US dollar and the sideways trend seen in flat steel producers' domestic offers have caused traders' prices to remain stable. SteelOrbis has heard that, although flat steel-consuming manufacturers continue their production, transaction volumes have declined. In this week's Turkish domestic spot market, 2-3 mm HRC offers have been at $780-800/mt depending on the thickness of the material, while 1-2 mm CRC offers have been at $920-950/mt - both ex-warehouse.