In the Turkish domestic flat steel market price increases have continued this week. Turkish flat steel producers have kept raising their flat steel offers, due to price increases in flat steel import offers and also due to higher raw material prices.
As SteelOrbis has previously reported, last week hot rolled coil (HRC) offers of Turkish steelmaker Çolakoğlu Metalürji were at $750/mt ex-works, before the producer closed its sales at the end of the week. Early this week, Çolakoğlu Metalürji reopened its HRC sales, but this time at $780/mt ex-works. On the last day of the week, Çolakoğlu Metalürji further increased its HRC price by $30/mt to $810/mt ex-works.
On the other hand, since the beginning of this week, Turkish integrated steelmaker Erdemir has not given any domestic flat steel price offers. The increases in raw material prices and also in flat steel import offers caused an anticipation of a price hike in the local Turkish market. On the last day of this week, Erdemir has revised its domestic offers upwards and has again started to give offers. SteelOrbis has learned from market sources that Erdemir has pushed its HRC offers up to the base price level of $850/mt, from last week's base price of $770/mt. However, it is also reported that Erdemir is not fully answering demand this week, and plans to start giving offers next week.
Early this week, Russian steelmaker Severstal announced that it would revise upwards its flat steel offers for Turkey and that thus its previous offers were no longer available. This week, another Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced its flat steel offers for Turkey. SteelOrbis has learned that MMK's HRC offers to Turkey stand at $760/mt CFR, while its cold rolled coil (CRC) offers are at $860/mt CFR. Ex-Ukraine flat steel offers for Turkey are expected to be announced next week.
In the Turkish domestic flat steel market, price hikes of local producers have also been reflected in spot market prices. In the local market, both stockists and traders have raised their own flat steel sales prices this week. However, some market players indicate that price increases are increasingly slowing down transaction activity and pulling down domestic flat steel demand. SteelOrbis has learned that in this week's Turkish domestic spot market HRC offers have been at $780-795/mt, while 1-1.5 mm CRC offers have been at $900-920/mt, both ex-warehouse. Following producers' price hikes and rising import offers, some sellers have closed their sales. Next week, further price increases are expected in the spot flat steel market.