Currency fluctuations are still restraining demand in the flat steel spot market in Turkey in addition to the higher prices. However, traders have once again increased their spot offers since last week. Buyers are cautious and they mention that current price levels are not sustainable due to the financial situation in the country. They have already started to buy only for their urgent needs, but still spot stocks have not been piling up, at least for now. "We still have low stocks in the spot market but this will not last forever. Producers continue to produce and traders are having trouble receiving their orders. We see an increase in producers' stocks. Now they are keeping materials because they have been produced for certain customers but, when those customers can not receive all of them because of insufficient credit limits, it is certain that producers will also start to sell them to the spot market. This situation causes everyone to worry and both buyers and sellers are really cautious in the spot market," a trader told SteelOrbis.
However, market participants state that producers are already targeting another price increase and this means higher offers will also be heard soon in the spot market. "Turkish producers are booked full until August and they expect more demand in the coming period because of better weather conditions," another trader told SteelOrbis.
Spot prices have increased by $30/mt for HRC, $20 for CRC materials, and have not changed for HR pickled materials, week on week.
|
Product |
Price ($/mt) |
|
|
Ereğli |
Gebze |
|
|
2-12 mm HRC |
980-1,010 |
990-1,010 |
|
1.5 mm HRS |
1,010-1,040 |
1,020-1,050 |
|
3-12 mm HR P&O |
1,100-1,120 |
1,110-1,130 |
|
0.6 mm CRC |
1,330-1,340 |
1,330-1,350 |
|
0.7-2 mm CRC |
1,300-1,310 |
1,300-1,320 |