The Turkish flat steel sector has been quite active in the past week, while mills and sellers are reported to be optimistic about the trend of the markets. From the end of August, demand has been greater than anticipated for the month of Ramadan and the flat steel market may gain further momentum with the possible increase in demand after the end-of-Ramadan holiday.
It is observed that Turkish domestic mills are increasing their base prices. However, stockists or sellers have yet to reflect the same degree of increase in their list prices. The reason for this is that end-user demand has not yet reached levels which match supply, although the flat steel market has experienced a good period after the sluggishness seen at the beginning of the summer. Nevertheless, prices appear to be stronger as compared to previous months. In the Marmara region of Turkey, traders are not giving offers for cold rolled products lower than $780/mt, while it is possible to hear price levels $10/mt lower in the Ereğli region.
Local producer Çolakoğlu Metalurji has started to offer hot rolled products of 3-8 mm thickness at the base price level of $645/mt as of this week. On the other hand, Erdemir is reported to be returning at different price levels to offers given from different regions and sectors, while its local offers of hot rolled products are known to be at $635/mt and its cold rolled product offers are at $740/mt.
Erdemir, which has been carrying out maintenance works on its plate rolling mill for a while now and is due to recommence production operations at the mill as of October 1, has started to return to orders that it has collected from the local market. Erdemir is giving local offers on effective basis; SteelOrbis has been informed that its base price of hot rolled plate (HRP) is standing approximately at the level of $645/mt.
Looking at the spot markets, prices of hot rolled (2 mm) and cold rolled (1-2mm) flat steel products continue to be heard at $650-660/mt and $760-780/mt respectively. Cold rolled products of 0.4-0.7 mm width are generally being offered at around $790-810/mt.