Cautious optimism creeps into Turkish flat steel market
Although prices slid during last week, the Turkish flat steel market became cautiously optimistic by Friday. Market participants started reporting from Thursday about the reactivating of purchasing by local flat steel buyers, sources inform Kallanish.
Buyers’ mood has changed in reaction to the expectation of the appointment of Turkey’s new cabinet and central bank executives, which was positively received by businesses. This led to active booking from domestic producers on Thursday and Friday, with the trend expected to continue into the coming week.
Major hot rolled coil suppliers such as Erdemir, Colakoglu, and Habas have closed July-shipment sales, and it is anticipated that August-shipment material sales will be opened in the coming weeks, possibly at slightly higher prices.
While a significant hike of $50/tonne in domestic prices is not expected for August-shipment material, a $10-20/t increase is likely, according to steel service centre representative. Domestic producers have a more advantageous position in terms of shipment compared to imports, as the most competitive Asian-origin HRC available for booking now would be for August/September arrival. This makes domestic buying more appealing for buyers, particularly service centres.
Suppliers of import material from Asian nevertheless expect increasing activity from Turkish import buyers this week.
However, not all market participants share the same level of optimism when it comes to imports. Some participants have raised concerns about the country's liquidity problems and the declining value of the lira, which can complicate import transactions. These factors may impact the willingness or ability of some businesses to engage in import activities.
China-origin HRC suppliers, who offered material at $560-565/t cfr Turkey at the beginning of last week, unchanged from the previous week, increased their offers by around $5-10/t on Thursday.
On Friday evening, it was reported that some Chinese mills withdrew offers, anticipating prices of around $600/t cfr Turkey for HRC and $680/t cfr for cold rolled coil in the following week. However, it was not largely confirmed at the time of the publication.
Truly global, user-friendly coverage of the steel and related markets and industry that delivers the essential information quickly while delivering on most occasions just the right amount of between-the-lines comment and interpretation for a near real time news service of this kind.
Anonymous
Very good overview of the weekly steel market.
Anonymous