Turkish Steel market participants take a wait and see approach during October

TURKEY November 12 2015 9:03 AM

ANKARA (Scrap Register): In October, the Turkish steel market stood still with participants taking a wait and see approach, as activity slowed down due to uncertainty around General elections due on November 1. Early October, Turkish producers were able to hold their asking prices near the $340 a ton mark, helped by the absence of China in export markets during their national holidays, reported the Steel Index.

However, weak demand combined with the continuous flow of imports, began to suppress domestic spot prices. By mid-month producers were heard reducing their offers to as low as $325-330 a ton to attract new orders. TSI’s Turkish HRC index finished the month at a new low of $327 a ton.

In September crude steel production in Turkey showed a 14% y-o-y decline to 2.5 million tons, according to the Turkish Steel Exporters’ Association (TCUD). 

Production via EAFs decreased by 23% y-o-y, while BOF mills increased output by 8% y-o-y. In total, between January -September EAF production declined by 15% y-o-y to 15.55 million tons, and BOF production grew by 8.3% y-o-y to 8.23 million tons.