As previously mentioned in SteelOrbis reports, flat steel import offers to Turkey have been expected to increase. In line with expectations, Russian producers' February production hot rolled coil (
HRC) export offers have risen by about $30-40/mt as compared to prices for January rolling, reaching $630-640/mt FOB. Accordingly, Russian
HRC offers to Turkey are now at about $660/mt CFR. Russian steel producer Magnitogorsk Iron and Steel Works (
MMK) is offering
HRC to the export markets at $640/mt FOB, while early this month another Russian steelmaker
Severstal was offering
HRC to the Turkish market at $660/mt CFR, while its cold rolled coil (
CRC) offers were at $750/mt CFR.
According to market sources, Ukrainian steel producer
Zaporizhstal's offers to Turkey are standing at $620-625/mt CFR for
HRC and at $730-735/mt CFR for
CRC. Other Ukrainian steel producers are heard to be offering
HRC to the export markets at $600-605/mt FOB.
On the other hand,
Romania-based steel producer
Arcelormittal Galati has also increased its
HRC offers for Turkey this month, pushing its offer prices up to $650-660/mt CFR, from last month's transaction price level of $610-620/mt CFR.
Following the import flat steel transactions concluded in Turkey back in December, current interest in imports is weak, since the gap between import offers and Turkish mills' domestic offers is narrow and also due to slack domestic demand. In December, ex-
Europe HRC transactions to Turkey were concluded at €480/mt CFR, with the influence of the weak euro. Russian producers' offers for March production are expected to come to light beginning with next week.
On the export side, Turkish mills'
HRC export offers are currently standing at $650-670/mt FOB. However, buyers in the Turkish mills' export markets, particularly in
Europe, consider this price range to be on the high side.