Flat rolled steel price levels in the Turkish markets have in the past week returned to the normal market levels after hiking due to tight supplies previously. Despite the relatively low price levels in the foreign markets, flat steel prices in the Turkish domestic market were somehow maintaining their levels due to both import duties and the impact of sharp price decreases in theFar East. As it is known, there have been some export deals with great tonnages fromChinatoEurope,Middle EastandFar Eastmarkets. Under the influence of these transactions, a certain decrease in ex-Russiaand ex-Ukrainematerial prices has been observed.
Meanwhile, in the local Turkish market, according to the Turkish Exporters Assembly (TIM) data,Turkey's general exports in September 2009 has decreased by 30.53 percent year on year to $8 billion 388 million. It should be noted that steel and steel products in this downtrend have important share. On the other hand, oversupply of steel products is being blocked by lack of imported materials. This situation allows the local producers and steel service centers to be able to sell their material without loss. However, market players think that there may be possible downtrend in the near future with the fact that the Chinese origin material will likely be seen more frequently in the international markets. According to market players, price uptrend may not be sharp but around $30-50/mt. It is thought that the impact of the decrease will be in the following one or two months and the downtrend will stop with gaining the supply demand balance. For this reason, it seems that a balance may be observed towards the New Year even there will be some troubles in the near future.
On the other hand,ErdemirproductionHRCis being sold in the local Turkish market at $620-640/mt,CRCis being sold at $720-740/mt for the time being. Also, import materials and Isdemirproductionmaterials are being sold at the same ranges due to the lack of material in the local market. It is thought that these troubles (sourced fromFar Eastaccording to most players) can be overwhelmed with gaining demand againstproductionlevels.