Flat steel prices in Turkey continue their unpredictable decrease. The main reason for the uncertainty in the markets last week was the postponement of orders by buyers due to the Turkish presidential elections. This uncertainty was compounded by the decline in steel stocks, which visibly reduced the price drops.
Against this backdrop, mills continued to make deals for the coming summer months. But buyers are hesitant to buy steel because of the risky market environment.
One of the biggest factors contributing to this risk is the depreciation of the Turkish Lira against the US dollar due to the impact of the political environment on the economy. For this reason, buyers and producers perceive it as less risky to source products from China as it offers lower prices in the import market.
What is the situation in the domestic market?
HRC prices per ton in the Turkish domestic market have decreased from $690-720 per ton EXW on May 17 to $680-700 per ton EXW as of the beginning of the week. Today, the current average HRC price is around EXW 800$ per ton in the domestic market.
CRC fell from EXW 760-780$ per ton on Friday to EXW 760-810$ per ton on May 18. The current average price for CRC in the domestic market is set at EXW $910 per ton.
How are export prices for HRC progressing?
Prices for HRC are quite slow due to the uncertain market in the domestic market. Turkey's HRC export offers have decreased from $690-710 FOB per tonne to $650-660 per tonne.
How are import prices in the steel sheet market?
Recently, China offered Turkey HRC at $560-680 per tonne CFR, but no significant deal has been reached yet.
Similarly, India was heard offering HRC to Turkey at $600-610 per tonne CFR. This offer is not expected to pave the way for new deals as it is higher under market conditions.
As for CRC, offers have been made from China at around $700 per CFR, but no evaluation has been made yet.
Comments
No comment yet.