While Turkish domestic hot rolled coil (HRC) prices are moving on an upward trend, Chinese HRC prices started to decline in mid-March, putting downward pressure on global HRC prices. HRC import offers given to Turkey have decreased by an average of $10/mt week on week. This week, HRC bookings of 10,000 mt from Ukraine and of 40,000 mt from Russia were concluded in the price range of $495-500/mt CFR. According to market sources, the high level of HRC inventories in China has been putting downward pressure on prices and Chinese suppliers will likely step up their export sales in the short term and offer further discounts on their export prices to attract orders. As a result, ex-CIS HRC prices are expected to decline as well.
Meanwhile, HRC offers from Russia and Ukraine have decreased by $10/mt week on week to $495/mt CFR and $500-510 CFR, respectively. CRC offers from Ukraine and Russia have remained stable during the past week at $570-575/mt CFR and $575-585/mt CFR, respectively. However, according to market sources, ex-CIS cold rolled coil prices on FOB basis have started to move downwards and this softening will likely be reflected in ex-CIS CRC offers to Turkey in the coming period.