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Flat steel market continues to be tense in global markets

In flat steel, deep demand in Turkiye's domestic market as well as in the global market caused prices to lose strength. Producers trying to stand upright and unacceptable prices were confronted.

Flat steel market continues to be tense in global markets

Import prices of flat rolled products remained below domestic market prices, leaving both Turkish producers and sellers unable to strengthen their prices.

Factories applied a $20 discount on tonnage purchases last week, while this week they kept their prices stable and showed a firm stance. In the spot market, traders kept their prices unchanged this week, even though the spot market was down by $30 last week.

The circulation of products with different origins in the market in illegal trades has put the Turkish steel industry in even more difficulties with weak demand.

The producers, who are waiting for protection from the competent authorities on the subject, clearly stated that the people or institutions purchasing such products will suffer more losses than profits in the long run.

The average spot HRC (hot rolled coil) prices by region, evaluated by www.steelradar.com on 4 October 2023, were calculated as follows;

Marmara Region prices; $ 675-680

Aegean Region prices; 685-690$

Iskenderun Region prices; 670$

The prices and deadlines of the producers were announced as list price as follows;

Aegean Region Producer: 660-665 $ (November Delivery)

Marmara Region Manufacturer: 670$ (December Delivery)

Black Sea Region Producer: $665-670 (November-December delivery)

What is happening in the global market?

In the US, HRC (East Coast) managed to establish a floor in the range of $680-695/ST EXW after many producers announced that the minimum offer level for the first half of the fourth quarter is not lower than $750/ST EXW.

Contracts for next month are already closing at at least $790/ST, indicating a significant step forward in the upcoming uptrend.

US hot rolled coil prices increased by $30/short tonne to $700/short tonne today, as steel mills achieved some success after Cleveland-Cliffs lowered hot rolled prices to a minimum of $750/short tonne last week.

In Germany, HRC was heard as EUR630 EXW. SAIL, India's major state-owned steelmaker, increased flat steel prices in preparation for October sales.

Reports indicate an increase of around Rs 1,250/ton in hot rolled coil prices and Rs 1,500/ton in PM Plate prices compared to the previous month.

The current benchmark prices for hot roll from Ahmedabad are hovering at Rs59,100/ton ($709) and cold roll at Rs63,800/ton ($766).

In China's domestic market, X-56 grade thick sheet was quoted at $534 including VAT and $465 excluding VAT.

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