Price stability in the Turkish flat steel spot market has not been enough to improve the mood of the market this week, as trading conditions remain increasingly defensive. Rather than reflecting firm sentiment, unchanged prices are mainly being seen as a result of traders’ attempts to prevent a sharper correction at a time when both scrap and domestic HRC prices are moving downward. On the demand side, buyers are continuing to stay away from stock-building and are approaching the market only for limited needs, while the upcoming summer period is further reducing expectations for a recovery in business activity before September. As a result, the market has become more fragmented, with pricing depending more on each trader’s stock position, cash flow needs and willingness to secure sales.
Local hot rolled sheet workable prices are generally heard at around $630-650/mt ex-warehouse, mostly unchanged week on week. However, some more aggressive offers are also being mentioned in the market at around $610-615/mt ex-warehouse, though only for limited tonnages.
In the cold rolled sheet segment, workable prices are currently assessed at around $720-740/mt ex-warehouse, while limited volumes are also heard to be available at around $710-720/mt ex-warehouse.
On the other hand, not all traders are following the lower end of the market. Some are still trying to resist the downward pressure by keeping their initial offers around $10/mt above workable levels, while later granting discounts during negotiations depending on buyer interest, tonnage and payment terms.
