Considering low-end user demand and new economic regulations in Turkey that have made it more difficult to continue business activities, flat steel traders who tried to maintain their offers' stable failed and have decided to drop the offers during this week.
“Although everyone made an effort to keep the price policy in place, it was unsuccessful since the demand was not at the appropriate level and we continue to face the same and greater financial difficulties,” a trader said to SteelOrbis.
While this was happening, several spot flat steel suppliers were impacted by the devastation of the floods in Turkey's Black Sea area, and trade activities came to a standstill.
“Over the weekend, there was a flood here, and many businesses were flooded. We are now cleaning everything that was damaged by the flood. Even if there was demand we could not be able to meet it since no one's machinery is working,” a trader in the Black Sea region of Turkey commented on their current situation.
As a result of the market's pessimistic prospects, the price for domestic hot rolled sheets has dropped to $700-740/mt ex-warehouse from $730-770/mt ex-warehouse last week. In a comparable manner, prices in the cold rolled sheet market have declined by $10-20/mt compared to the week before to $790-830/mt ex-warehouse.