In the Turkish domestic flat steel market the sluggishness has prevailed this week, avoiding prices from rising. And the slight recovery of demand observed last week has weakened. Many local traders expect the sideways trend to continue for a while. In the meantime, the narrowed product variety in the market and diminished inventories prevent prices from softening. However, if demand strengthens by late August or early September, prices may see an increase in this period.
On the other hand, traders are facing difficulties due to the strength of the US dollar against the Turkish lira, coupled with weak demand, since they make purchases from producers on dollar basis and sell on lira basis in return. While some market players believe that flat steel prices in Turkey have already hit the bottom and no further price decreases will be seen, some other market players think that with producers receiving new orders they will increase supply, and this will result in some price increases both on producer side and spot market.
After filling its order books for September production, Turkish integrated steelmaker Erdemir reportedly began accepting orders for its October production. Erdemir's price for September production hot rolled coil (HRC) was at $745-750/mt ex-works. While Colakoglu Metalurji is offering August production HRC to the domestic market at $750/mt ex-works, it is heard that HRC offers of MMK-Atakas are at similar price level.
This week, spot flat steel prices in Turkey have not shown any significant changes as compared to last week. Accordingly, in this week's Turkish domestic spot market HRC offers have been at $760-770/mt, while 1-1.5 mm cold rolled coil (CRC) offers have been at $890-910/mt, with prices of thinner CRC specifications at $930-960/mt, all ex-warehouse.
As for imports, offers given to Turkey have remained almost unchanged as compared to previous weeks. Since import offers become higher than domestic prices with the addition of import duty, these offers do not see much interest in Turkey. In the meantime, Turkish steel pipe manufacturers, being immune from import duty, have continued to conclude bookings from Ukraine at reasonable prices. Russian steelmakers' HRC offers to Turkey stand at the price range of $730-740/mt CFR, while HRC offers of Ukrainian steel producer Zaporizhstal to Turkey at $710-720/mt CFR are considered to be more competitive.