While offers from metallurgical companies continue with high prices, they do not reach the same level in actual transactions, i.e. in the sales phase. Those who find buyers are desperate to cut prices in the bargaining process due to the weak supply-demand balance.
SteelRadar analysts believe that prices will reach their peak in January-February deliveries, but may fall again due to insufficient demand.
Türkiye's flat steel markets have also had a tough time this year amid energy costs and global price competition. Metallurgical companies, which have struggled to keep prices up as demand for all steel products in the markets has decreased, are looking more hopeful for 2024. The effects of the steps taken to curb inflation are expected to be felt in the first quarter of 2023. In the flat steel markets, producers have been offering export offers for hot rolled coil steel up to $610 a barrel in recent months, while domestic ex-factory prices have fallen to $630 a barrel. However, global improvements and price increases in recent weeks have strengthened the hand of Turkish producers. Ex-mill prices for the domestic market have risen as high as $670. Export figures are in the range of $650-665.
November 27 TURKISH DOMESTIC HRC MARKET EX-FACTORY PRICES
Aegean Region Producer 660-665$ (January-February delivery) (+5$)
MARMARA REGION PRODUCER $665-670 (February delivery) (0.00)
PRODUCERS IN ISKENDERUN REGION 660-665$ (0.00)
BLACK SEA PRODUCER $660 (January-February delivery) (0.00)
November 27 TURKEY HRC Domestic Market SPOT (TRADER) PRICES
Aegean Region 700-710$ (+10$)
Marmara Region 690-700$(+5$)
Iskenderun Region 680-690$(0.00)
What happened in the global flat steel market?
China's steady increase in hot-rolled steel export prices for about a month gave a boost to the market and signaled that prices had returned from the bottom. However, it was interpreted that the reason for this increase was not the high demand for flat steel, but the sharp increase in raw material prices.
The Chinese government's constant promises of aid to support the economy and development, and the fact that the Chinese government has been broadcasting these promises through its media outlets, creates a positive impression for prices in the global steel market. But there are market experts who see all this as a method of experimentation and support. The vast majority of the market thinks that the real increase in consumption will not be reflected in demand until the second quarter of 2023.
In the US, tentative agreements between the United Auto Workers (UAW) and the Big 3 automakers Ford, General Motors (GM) and Stellantis have led to increased demand from previously striking plants. Higher prices were also being discussed and offered in the US flat steel market.
In Europe, after bottoming out, prices have been rising for three weeks in a row, supported by interest rate hikes and the end of strikes in the US, as automakers get back to work on production. All these developments have improved conditions in the Asian market.
For 2024, all global steel markets are painting a positive picture, hoping for a gradual improvement.
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