Activity observed in the billet and scrap markets in Turkey last week and also hot rolled coil deals concluded to Turkey has triggered a question: have the overall flats market gained momentum? While the scrap, billet and rebar price increases in the overall markets has created the impression that the price downtrends has become an end, we will see clearly if this impression is true or false in the upcoming days. It has heard that there have been some deals of flat products from Ukraine to Turkey at the price levels of $380-400/mt CFR Turkey last week. It is mentioned that Ilyich will increase its offers after these deals. Upcoming days will show that if this optimistic mood will continue or not.
Looking at the Southern Europe countries, it is observed that no activity that seen in Turkey has happened there yet. Demand in Southern Europe has been calm. HRC prices in the Italian domestic markets have decreased by approx.€30/mt in the stockists compared to the previous week. HRC price levels in this market have been at the range of €460-470/mt FOT as of past week. On the other hand, import HRC offers to Italy have pat week been at around €390/mt CFR. Offers from China for the same material have reportedly been at the levels of €440-450/mt CFR. HRC prices in the Portuguese domestic market have also decreased by approx.€30/mt in the stockists compared to the previous week like Italy. Despite the HRC price levels of €610-620/mt delivered to customer in the domestic market, demand has still been weak. Meanwhile, HRC base prices of the offers given from Italy to Portugal at the level of €450/mt delivered to Portugal.
HRC prices in the local Bulgarian market have been at the range of €450-500/mt. HRC offers from Ukraine to this country have been at €530/mt CFR Bulgaria. It is observed that the Romania flats market is more active compared to the other Southern Europe markets. A price decline has also occurred in the Romania domestic flats market and the stockists have been trying to sell HRC at the price level of €620/mt and plate at the level of €700/mt. Meanwhile, as a slight softening has been observed in the Polish domestic flats market, offers for HRC from Ukraine to this country have been at the level of $470/mt DAF and offer for CRC have been at the level of $550/mt DAF.
Looking at the Middle East, some deals have started to be heard in this region particularly in Iran and the UAE. It is heard that deals to Iran have been concluded from Russia and Kazakhstan. Beside, it has heard that there have been some financial problems in those two countries. (Iran and the UAE) Import HRC offers to Iran and Dubai have been at $450-500/mt CFR (except offers from China.) It is heard that offers from China have been at higher price levels. In Saudi Arabia, HRC prices have decreased to the level of $600/mt ex-works in the past weeks from the late October level of $750/mt ex-works.
Despite the fact that an expected recovery in the overall financial markets has not been occurred yet, we will see more clearly in the upcoming days if the optimistic developments will continue or not.