Turkish flat steel market witnesses increased demand, prices still stable

Before the one-week-long holiday last week in Turkey, the Turkish domestic flat steel market was expected to witness a recovery in demand and transactions, and consequently traders were predicted to slightly increase their price levels, after a long period of sluggishness due to the summer season and Ramadan. With the start of the current week, demand for flat steel products in Turkey has improved slightly as expected, though no significant change has been recorded in prices yet. Market players state that this week's flat steel offers are mostly intended to test the market. It is foreseen that by next week transactions will increase and prices changes will be seen following the increased activity.
 
Turkish steelmaker Erdemir is currently offering October production hot rolled coil (HRC) to the domestic market at $760/mt ex-works, while its 1-1.5 mm cold rolled coil (CRC) offers are at $915-925/mt ex-works. Colakoglu Metalurji and MMK-Atakas, on the other hand, are offering HRC at about $750/mt ex-works.
 
There have not been any significant price changes in the slow trending spot market. Accordingly, HRC spot prices this week have remained at $760-780/mt, and prices of CRC of 1-1.5 mm thickness have been at $890-910/mt, both ex-warehouse. Thinner gauge CRC prices have been at $930-970/mt ex-warehouse.
 
As for imports, new import offers are expected to be heard in the coming days. As we mentioned in previous weeks, foreign mills are widely predicted to increase their offer levels slightly. This week, Russian steel producer Severstal has announced an increase in its HRC export offers by $5/mt to $710/mt FOB St. Petersburg. In the coming weeks, following the announcement of new offers from Russian and Ukrainian producers on CFR Turkey basis, the Turkish flat steel market is expected to see increased activity.