For flat and long products has turned around in recent weeks following an upturn in demand in Turkey’s export market . Flats prices have improved in line with other regions such as the Far East and, after holding back for much of January, buyers have jumped into the Turkish market to replenish stocks, forcing traders to bid high for their allocations, market specialists stated.

Erdemir, the country’s only flats producer, has hiked HR coil prices to $420/t fob for European buyers, rising to $430-435/t fob to the US; for CR coil, the new price ranges $520-525/t, the sources said. Prices at the company’s last tender in November were $405-415/t and $495-505/t, respectively, for HRC and CRC. Current bookings are for April/May delivery, although some shipments could be delivered in March. Availability for galvanised is said to be limited.

Erdemir knocked $40/t off domestic prices, taking HRC and CRC to $500/t and $595/t, respectively, but domestic are said to be keeping purchases to a minimum until later this month when they can compare Ukrainian/Russian prices. In long products, meanwhile, the rise in prices during the second half of January has continued into early February on the back of strong demand from Europe. Buyers in Spain and Germany are looking to Turkey to supply material for various construction projects now that Italy is fully booked.

Traders said the Gulf region is also expected to renew activity this week while higher scrap costs are compounding the firmness in end product prices. Some longs mills are fully-booked until April with result that their prices are around $5-10/t higher than market levels of $400-405/t fob for rebar and wire rod (mesh). (2006-02-03)