As of today, August 17, Turkish producers have increased their domestic hot rolled coil (HRC) prices by $20/mt as compared to last week to $570-590/mt ex-works, as their order books are fairly full and also due to the ongoing upward trend of flat steel prices in the global market. Furthermore, the recovery of the Chinese futures markets seen today provided additional support for Turkish producers to increase their prices. However, demand for domestic HRC in Turkey has slowed down sharply over the past week due to the decreases in finished steel prices in the Chinese domestic market, the declines seen in global iron ore prices from the beginning of the current week until today, and also due to the approach of the Feast of Sacrifice holiday (Aug. 31-Sept. 4). Meanwhile, Turkish buyers consider producers’ current domestic HRC prices to be on the high side, which is another reason for the sluggishness of demand for their products.
On the other hand, demand in the local Turkish HRC spot market has weakened due to ongoing liquidity problems and the approaching holiday. However, prices have increased by $20/mt week on week as a result of the rise in domestic producers’ quotations. Market sources state that traders’ inventories of low-priced HRC are almost empty and spot prices may indicate sharp increases as traders start to fill their stocks with high-priced HRC after the holiday.
|
Product |
Price ($/mt) |
|
|
Eregli |
Gebze |
|
|
2-12 mm HRC |
580-600 |
590-610 |
|
1.5 mm HRS |
620-640 |
635-665 |
|
2-12 mm HRC (for large tonnages) |
|
570-590 |
|
3-12 mm HR P&O |
640-650 |
660-690 |