Turkish flat steel producers focus on exports amid low domestic demand

Turkish flat steel producers have switched their focus to the export markets this week amid poor demand in their domestic market.
 
Turkish flat steel mills' export markets have been livelier than the Turkish domestic market, on the back of European producers' aim to raise their offers for March and April production as compared to February production and also due to the strengthening of the euro against the US dollar in the past week. SteelOrbis has learned from market sources that Turkish mills have concluded HRC transactions mostly to Italy and also to Spain, Portugal, Germany and the UK at the average price range of $650-660/mt FOB. In the meantime, it is also learned from market sources that, following its export sales, Erdemir is expected to issue its April production HRC export offers at $670-680/mt FOB.
 
In the Turkish domestic market, on the other hand, local HRC prices have remained unchanged at $660-670/mt ex-works despite low demand, as producers which are capable of producing both long and flat steel have switched a part of their flat steel production to long steel production and also due to the abovementioned export transactions. Turkish producers are expected to keep their prices for March production at current levels and it is thought that domestic demand may show some improvement in the near future.
 
In the meantime, Turkish steel producers' cold rolled coil (CRC) domestic offers are standing at the price range of $770-780/mt ex-works and demand for cold rolled material is better than demand for hot rolled material in Turkey.
 
In the meantime, domestic spot prices in the Turkish flat steel market have continued to follow a sideways trend. Accordingly, spot prices for HRC of 2 mm and above thickness have been at $650-670/mt for cash payments, while it is known that some producers, who are trying to prevent price drops, are maintaining their offers at higher levels and are currently offering HRC at $670-690/mt ex-warehouse, for deferred payments.