Despite the rebound in the scrap market, Turkish flat steel spot traders have had no choice but to reduce offers due to the ongoing downtrend in the hot rolled coil (HRC) market. According to market participants, Ramadan and the approaching elections have had a greater negative impact on demand than in previous months. As a result, while medium-sized and larger traders are attempting not to significantly reduce their offers, smaller traders are offering hot rolled sheets nearly at producers' prices due to their shortages of cash.
“The reduction in spot prices continues and prices have plummeted to $665/mt ex-warehouse, due to a lack of demand and unpredictable economic conditions, and so traders are selling goods almost at manufacturers’ prices for cash,” a smaller-sized trader told SteelOrbis.
Over the past week, workable domestic hot rolled sheet prices have been quoted at $665-680/mt ex-warehouse, down from $690-700/mt ex-warehouse. Larger and medium-sized dealers have decided to offer at roughly $670-680/mt ex-warehouse, while smaller traders have offered at $665/mt ex-warehouse.
Comparably, most traders in the cold rolled sheet market have reported that this week prices have fallen to $800-830/mt ex-warehouse, compared to $810-830/mt ex-warehouse.