Turkish stainless steel market outlook

A stainless steel wind from China continues to blow in the Turkish market. Currently, most traders and end-users are trying to increase the number of bookings from China. The major producers in the automotive and the white-goods industries - Turkey's major industries - have redirected their focus to the Far East in an effort to reduce their costs by securing regular supplies from this region. The reason for this change is thought to be the reduction in the number of bookings concluded by Turkish mills from European mills as a result of the high demand in Europe and the high prices of European-origin materials due to the elevated price levels of nickel. The most interesting development in the market is that the trade volume is flowing from seller to seller and that inventories have started to swell. The developments in the Turkish economy will constitute the most important factor determining the state of the industry in the coming period. If positive signals are received from the economy and the markets, and if active purchases are seen again on the part of the end-users, the market may then see a general revival. However, for the time being, there is a calm of sorts reigning in the market, apart from some of the steel service centers, which work with major companies and conclude long-term contracts. The jump observed in the nickel prices faltered last week, and so this week's prices have been following a more stable trend. Due to the speculation following the sinking of a ship carrying 1,000 tons of nickel, stocks declined and nickel prices increased. Furthermore, producers also hiked their prices due to the rise in construction sector activity in line with the favorable weather conditions in Asia. Although this situation has revived trade among Turkish sellers, end-users have either kept their purchases in lower numbers or focused on 400 series materials. In order to grasp the price trend, we may take a look at the price levels in the Turkish market. For instance, the market price level of German origin second quality 304/2B cold rolled stainless steel plates of 2 mm thickness is at Euro 3,800-3,850/mt + VAT (4,913-4,977/ton), while the market level of second quality 304/2B cold rolled stainless steel coils of 2 mm thickness ex-same country is at Euro 3,700-3,750/mt + VAT ($4,784-4,848 /ton), also in the local Turkish market. On the other hand, Chinese origin second quality 304/2B stainless steel coils of 2 mm thickness are being sold at $4,600-4,800/ton + VAT in the Turkish market. German origin 304/2B stainless steel plates of 8-12 mm thickness are being sold at €3,550-3,650/ton ($4,590-4,719/ton). Also, stainless steel pipes ex-Far East are being offered at $4.650-4.800/ton + VAT in the Istanbul market. Although prices have maintained their high levels, stainless steel materials ex-Far East have been sold in the Turkish market at the same levels for almost a month now. Prices so far have not indicated any signs of a change.