Turkey’s HRC market has started the new week with another price decrease seen in the import segment. Particularly, ex-China prices have dropped by around $15/mt, which was a bit unexpected for market players. Although many believe that the traders are shorting the market, the mood is still rather negative. In addition, demand for Turkish HRC remains insufficient for now, especially in the export markets, while the import scrap price trend is still downward.
Currently, the lowest HRC prices from China in Turkey are heard at $558/mt CFR for Q195 HRC of 3 mm and higher and for around 40,000 mt lots. Other trading companies are offering at around $563-565/mt CFR for the same material and volume, while last week prices stood at $572-577/mt CFR for May deliveries. “Maybe it is connected with the ongoing antidumping investigation since the tax is expected to be retroactive. Scrap is down and HRC demand is generally not too good these days. Buyers are waiting,” a source told SteelOrbis.
In the domestic market in Turkey, HRC offers are stable for now at $665-680/mt ex-works, with a few indications still voiced at $690/mt ex-works. Most large lots are available for May production. As for exports, some mills are at $650-660/mt FOB with no luck in selling, while the lowest reported levels are at $630-640/mt FOB. “If they [Turkish mills] use cheap Russian slab, they might go even lower than that for HRC for Europe,” a source said. The latest ex-Russia slab sale was closed a couple of weeks back at $525/mt CFR for sanctioned material, while the most recent bids are not above $500/mt CFR, taking into account the weaker HRC segment.
