Weak domestic demand drives Turkish flat steel producers to export markets

Friday, 04 March 2011 13:58:11 (GMT+3)   |  
In the past week, the Turkish flat steel market has continued its stable trend. Despite strong iron ore prices, recent oil price hikes and flat steel import offers to Turkey which are higher than domestic prices, price levels in the Turkish flat steel market have continued to trend sideways due to the ongoing sluggishness of demand.
 
In the past week, Turkish flat steel producers have maintained their domestic offers at their previous levels. Thus, the Turkish integrated steelmaker Erdemir's April production HRC offers still stand at the base price level of $850/mt ex-works, while its 1-1.5 mm CRC offers are at $960-970/mt ex-works.
 
Due to the further slowing down of domestic flat steel demand, Turkish flat steel producers have started to focus on the export markets. It is reported that some flat steel transactions have been concluded to the European market in recent weeks. SteelOrbis has learned from market sources that local producers' HRC export offers stand at the base price range of $770-810/mt FOB.
 
In the Turkish flat steel spot markets, traders have not made any significant changes to their sales prices in the past week. Although these traders have faced some difficulties in maintaining their prices at previous levels due to the weak demand, prices have remained above a certain level. On the other hand, since flat steel import offers and producers' domestic prices are higher as compared to spot prices, sellers are now seeking to push up their prices. In this week's Turkish domestic spot market, 2-3 mm HRC offers have been at $780-810/mt, while 1-1.5 mm CRC offers have been at $920-950/mt. In the meantime, 0.5 mm hot dip galvanized (HDG) coil has been priced at $980-1,005/mt and 1.0 mm HDG coil prices have been at $955-965/mt. All these prices are ex-warehouse.

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