Turkish flat steel mills soften their prices for June rolling

Continuing to accept orders for their June production, Turkish flat steel producers have pushed down their price levels amid weak demand.
 
Accordingly, Turkish mills are now quoting hot rolled coil (HRC) for their domestic market at $675-680/mt ex-works, down from previous weeks' $680-690/mt ex-works. Although there are some bookings at this price range, the bookings are smaller in volume. Pipe manufacturers, who usually purchase material in larger tonnages, have slowed down their bookings as their exports to Europe have also lost strength and this affects flat steel producers' sales negatively.
 
In addition to poor demand for flat steel products in the local Turkish market, flat steel demand coming from foreign markets is also weak, causing the export side to remain slack. Market sources state that the euro/dollar exchange rate at 1.31 makes it difficult for flat steel exporters to Europe to fetch a workable price level, although current price levels may become acceptable again if the euro gains strength against the US dollar. Turkish mills' HRC export offers are currently standing at $670-680/mt FOB. It is reported that, although the Tunisian and Moroccan markets are relatively more lively in terms of flat steel demand, there are quite aggressive offers available in these markets given by Russian mills.
 
The general expectation suggests that it may take September or October for demand to see a revival.