Although China has been quiet in terms of hot rolled coil (HRC) exports lately and has been expected to remain that way in view of the awaited tax rebate cut annunciation, suppliers from China have been active in the Turkish market lately.
According to sources, around 15,000-20,000 mt of HRC from China have been sold through a trader at $965/mt CFR for June shipment. Some re-rollers and pipe-makers have also reported that they have received $970/mt CFR, but they are taking their time to book since the tax rebate issue is still not clear. “Everyone today is acting like the earlier discussed decrease from 13 to 0 percent is already an official decision. Most probably it will be, but if not a lot of people might find themselves in trouble,” a trader told SteelOrbis.
China again becoming active in Turkey, though not considered a big disturbance in terms of volumes for now, may undermine some business for CIS-based mills. The latest offers from the CIS have been mainly heard at $960-970/mt CFR and above in some cases. Domestic HRC offers in Turkey are still at around $1,000/mt ex-works on average.
