By the end of last week, the market's reaction to Erdemir's new price list announced for March production was a matter of concern. Especially, the $25/mt price increase for hot rolled products was below market expectations. This week it has been mentioned in the market that Erdemir may be observing demand in the market with a view to raising its prices again.
Demand is still stagnant in the Turkish flats markets, as end-users continue to be cautious when faced with the increased prices from Erdemir, and also due to the difficult winter weather conditions affecting almost all regions in Turkey. Meanwhile, local traders complain about the lack of certainty in the market. In recent weeks, increasing import offers were supported by Erdemir's price hike, and, as already mentioned, it is rumored in the markets that Erdemir will raise it prices again.
This week Erdemir has been collecting orders. It can be said that there has been a significant number of orders for Erdemir's March production. Given the anticipated price increase, such demand from the flat steel market is normal. The high levels of orders for March production provide a good indication of the lack of panic in the market.
In the domestic market, it is expected that increased demand will provide support for the new prices. With a sustained recovery of leading domestic sectors like the automotive and construction sectors in the coming weeks and months, the uncertainty in Turkey's flat steel market may be resolved and prices may continue to rise.
In the local Turkish flats market, 2 mm HRC prices are standing at the range of $600-610/mt and 1 mm CRC prices are at the levels of $720-730/mt. With the price slowdown in recent weeks, it can be said that there has been a softening of about $10/mt in the market.