Demand for domestic producers’ products is still weak in the local Turkish hot rolled coil (HRC) market, due to the ongoing rapid strengthening of the US dollar against the Turkish lira and due to the political and economic uncertainties in Turkey. However, Turkish steel producers have increased their domestic prices for February output over the past week, increasing them by $10/mt week on week to $540-570/mt ex-works. Nevertheless, buyers are still postponing their purchases, considering these price levels to be very high and expecting that the decreases in prices of coking coal and iron ore will be reflected in producers’ HRC quotations.
In the same period, demand in the Turkish HRC spot market has remained low since cash flow problems continue to exist and also due to the problems already mentioned above. However, traders have increased their HRC prices by $35/mt on average and raised their HR pickled and oiled coil offers by $10/mt, week on week, in line with the increases in producers’ prices and also since high-priced hot rolled products previously booked have continued to enter their inventories.
The domestic sales prices of traders for local and imported hot rolled flat steel products in the Eregli and Gebze regions of Turkey are as follows:
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
540-550 |
550-570 |
1.5 mm HRS |
580-590 |
595-615 |
2-12 mm HRC (for large tonnages) |
530-540 |
|
3-12 mm HR P&O |
570-580 |
590-620 |