Turkish HRC demand still below desired levels as production costs rise

The revival anticipated for April has not been observed yet in the Turkish flat steel market. Increases in scrap prices, as well as increased energy prices in Turkey and the stable trend seen in iron ore prices, have all resulted in higher production costs for steel producers. However, sluggish domestic demand has prevented any price movement, whether upward or downward, in local flat steel prices.
 
While Turkish flat steel producers do not intend to reduce their prices given their high costs, buyers for their part are hoping for a softening of prices amid the current weakness of demand.
 
Turkish steel mills Erdemir and Colakoglu Metalurji are offering hot rolled coil (HRC) to their domestic market at $700-710/mt ex-works, for June rolling, while it is learned that MMK Metalurji is offering HRC at $680/mt ex-works, for May production.