Hot rolled coil (HRC) buyers in Turkey have booked some additional volumes on the import side with the preference given to Russian sellers. Low-priced offers still exist from Asian sellers, while Turkey itself has been aiming at higher offers next week.
In addition to earlier booked tonnages from Russia, Baltic region-based Severstal has sold 40,000 mt of HRC for May production in several lots to Turkey at $350-360/mt FOB, which is estimated at around $385/mt CFR by the sources. NLMK has traded an additional 10,000-15,000 mt of HRC at $385-390/mt CFR, market players report. Another Russian seller MMK has closed 5,000 mt of HRC to Turkey at $380/mt CFR. As a result, over the past two weeks Turkey has booked close to 100,000 mt of ex-Russia HRC, helping the sellers to more or less close their sales of May production. Some sizable lots have been also booked to Asia and to North Africa.
Asian HRC sellers remain present in the Turkish market with low offers, with not much interest seen. Sources mention that South Korea has been offering $400/mt CFR on average with no deals reported. Indicative levels from India have been voiced at $410/mt CFR, the same as a week ago.
According to sources, Turkey has managed to sell sizable HRC volumes last week to the south of the EU and Antwerp and also to North Africa, although the Turkish mills had to decrease offers to $390-395/mt FOB in order to attract inquiries. Some sources estimate the total tonnage of overseas bookings at around 60,000-80,000 mt as sold since early this month.
Expectations in the market regarding further price movement are currently mixed. Some expect prices to rebound as some significant lots have been purchased and sold in the Turkish market over the past two weeks. “What I feel is that prices starting with the number three will not exist anymore,” a trader said. However, some sources express doubts that the rebound will be quick and sustainable as Turkey’s consuming industries are not in a good shape, which exerts pressure on suppliers, SteelOrbis has learned.