Turkish SS markets see slow revival

Taking a look at the Turkish stainless steel markets, we see a slow revival taking place. In line with this reawakening, the number of bookings for stainless steel coils and pipes ex-China has also started to increase. As per the information received from the Chinese local market, the Chinese government has started to exert strict control over exports and to clamp down on tax fraud via public finances and banks. As is well-known, China is currently trying to put a break on steel exports in order to get rid of inefficient capacities and to modernize the industry. The fact that Baosteel has announced that it is to acquire Bayi Steel is a good indication that the change has started in the Chinese local market. With the speed-up of these projects, Chinese offers given to Turkey have started to increase. With China's success in controlling its exports, the number of unqualified and low-priced products will inevitably decline. The price of 304/2B cold rolled stainless steel coils of 2 mm thickness is at RMB 35,000/ton (4,500$/ton) in the Shanghai region of China. These coils are being sold in the Turkish local market at $4,750-4,850/ton levels. Although Indian origin bars and Chinese origin pipes reign in the Turkish market, there has also been an apparent increase in the number of Chinese origin bars in the subject market. Due to the general supply-demand equilibrium seen in the Turkish market, prices have been following a stable trend since last month.