Although demand has remained relatively low and economic difficulties have persisted in Turkey, local flat steel traders have chosen to keep prices unchanged since there has been a stabilization in the hot rolled coil (HRC) segment during this week which is mainly influenced by the recovery seen in import prices, particularly from China. In addition, the price differential between flat steel spot traders and HRC mills is narrowing, and so traders cannot significantly reduce their offerings or increase them since prices have not reached the bottom. Meanwhile, the majority of traders are aware that prices are under pressure from persistently unfavorable circumstances in the domestic market and, as a result, prices are expected to trend down in the near future.
“Nothing has changed in the market, but prices are being suppressed and we expect a decrease because demand is almost nonexistent,” a trader told SteelOrbis.
According to market reports, the prices for domestic hot rolled sheets are stable week on week at $690-710/mt ex-warehouse. While a few traders have chosen to give higher prices at about $730/mt ex-warehouse, which is unacceptable in the present market circumstances.
“I understand that prices will ultimately fall owing to a lack of demand, but, because expenses are high and trading is more difficult due to economic challenges, it is critical for us to maintain normal profit levels or we will face difficulties,” a trader told SteelOrbis.
In a comparable manner, prices in the cold rolled sheet market have remained stable week on week at $790-800/mt ex-warehouse.