The Turkish flat steel markets, which had previously registered increased activity in relation to import offers both before and after the recent religious holiday, have this week been focusing on the collection of orders by local integrated mill Erdemir. Orders were being received by Erdemir up until last night in the local market, and the producer will issue notification next week of approved orders. Also, Erdemir was expected to announce export offer levels after collecting orders in the local market and has just today issued its new export prices. Thus, in flats offers given by Erdemir to the export markets, it is reported that base prices of HRC are at the level of $540/mt FOB, while CRC base prices are at $650/mt. In addition, base prices of HDG are at $740/mt FOB. All prices are given for January production materials. On the other hand, Isdemir has been offering HRC to the local market at a base price level of $545/mt ex-works, after the producer previously sold HRC at the base price level of $530/mt ex-works.
Meanwhile, no great change has this week been observed in import flat steel offers to Turkey compared to last week; however, it is mentioned in the market that Ukrainian steel producer Ilyich will likely announce its new prices next week and will reportedly try to raise its prices. On the other hand, another Ukrainian producer DMZ has this week figured a lot in the Turkish plate market. While DMZ was mentioning the price level of $470-480/mt FOB Mariupol on Friday last week, traders have this week offered DMZ production plates to Turkey at $515-520/mt CFR Turkey. Although traders' firm bids have been at lower levels compared to DMZ's FOB levels, it is known that the producer does not want to decrease its prices on account of the steadiness of demand. On the other hand, it is expected that Alchevsk will announce new plate offers in the upcoming week. Meanwhile, ex-Macedonia plate offers to Turkey have remained at around $650/mt CFR.
While it cannot be said that flat steel demand in Turkey is very active, some acceleration is observed. Even so, buyers are very careful about the new price levels as they are still uncertain of the future.