The rise in global energy prices has also affected Turkey, and Turkish mills have started raising their prices, which is expected to eventually impact the positions of local flats retailers. Many traders, however, believe that this increase will be temporary due to long-standing negative factors such as global inflation, weak demand, currency imbalances, and an increase in cost prices. On the other hand, some sources believe that, due to the increase in these prices and the end of the summer holidays in Europe, business activity will pick up and the market will start moving.
Turkish hot rolled coil (HRC) producers have been aiming to increase offers to $640-660/mt ex-works, but the prices may surge further given the 50 percent rise in energy tariffs for industries, as announced on September 1. In addition, EU mills have been increasing their local offers since the end of last week, which is also expected to support Turkish producers’ prices. However, concerns regarding low demand and possible competitive offers from Asia still exist.
“The availability of HRC at prices much lower than ours in Asia and Russia as well as the extremely low demand in local and foreign markets indicate that this increase will not last for very long and will decline over the coming weeks,” a trader told SteelOrbis.
Workable domestic prices for hot rolled sheets are at $670-705/mt ex-warehouse, up $5-10/mt over the past week. In the meantime, domestic cold rolled sheet prices rose by $20/mt to $770-800/mt ex-warehouse. Some sellers, however, are aiming to sell at up to $850/mt ex-warehouse, which is not workable under the current market conditions.