The Turkish flats steel market made a relatively active start to the current week. Import quotations have been rising and the large domestic stockists have made frequent upward adjustments to their sales price during the week. In line with the rapid increases of raw materials prices in particular in the last two weeks, flat steel product prices have also seen rapid increases.
This week, Turkish producers Erdemir and Isdemir, collecting additional orders, sold HRC and CRC at the levels of $680/mt and $770/mt respectively, both ex-works. After collecting orders for April production, Erdemir's return to the market was below its number of received orders, especially for hot rolled products.
In addition, Ukrainian steelmaker Ilyich's offers were clarified this week. Ilyich's HRC offers to traders are standing at $630/mt FOB, while traders' offers for Ilyich production material have increased to the levels of $650/mt FOB for HRC, $750/mt FOB for CRC and $700/mt FOB for plate. This constitutes an increase of $100/mt as compared to offers for March production. Also, Ukrainian producer Zaporizhstal has concluded sales of HRC to Turkey at $650/mt CFR.
Plate prices also underwent changes over the past week. While Ukrainian mill Donetsk's offers were at $570/mt FOB last week, the producer's offers increased to $610/mt FOB on Monday and were heard at $640/mt FOB on Wednesday. Traders' offers for Donetsk production plates to Turkey have also increased, from $650/mt CFR to levels of $670-690/mt CFR.
In the local Turkish market this week, prices have changed on a daily basis. Last week, hot rolled product prices were in the range of $630-640/mt, while early this week prices increased to levels of $680-700/mt. After posting significant increases, hot rolled product (2 mm) and cold rolled product (0.5 mm) prices are now standing at levels of $700/mt and $850-860/mt, respectively. In the local market, for now, traders appear to be accepting the new price levels.
Galvanized product prices have also seen an increase in the Turkish domestic market, with 0.5 mm galvanized product prices now standing at $950/mt, while 1-2 mm galvanized are at $870-890/mt.
Demand has started to gain momentum in the local Turkish market. Erdemir is expected to announce a price increase for its May production. Due to the higher raw material prices, the current price increase trend is expected to continue.