CIS-based HRC sellers bullish in new offers to Turkey

Friday, 01 November 2019 16:33:08 (GMT+3)   |   Istanbul
       

CIS-based hot rolled coil (HRC) producers have started to announce increased prices for December production for Turkey, citing the higher scrap and HRC prices in the country. However, some sources believe the trend might be short-lived.

Russia’s MMK, according to market sources, is testing the water with $395-400/mt CFR for small coils and $405-410/mt CFR for big coils, up by around $10-15/mt compared to the previous round of sales. The latest HRC price from NLMK for November-December production has been at $400/mt CFR, up around $5/mt over the past two weeks. It is worth mentioning that, if the Turkish mills manage to sustain the uptrend, NLMK is likely to increase its prices further. Severstal has not been voicing any firm offers for Turkey, while its FOB price for the Middle East and North Africa (MENA) region is set at $385/mt FOB, SteelOrbis understands.

Ukraine’s Metinvest International S.A., which has been in the Turkish market this week with $370-375/mt CFR for small coils, has withdrawn its offers. The supplier intends to reopen negotiations next week at $380/mt CFR for small coils and at $390/mt CFR for big ones, SteelOrbis has learned.

Turkey’s price increase for HRC, voiced last week, has so far failed to stick. The domestic levels have declined by $5/mt to $415-425/mt ex-works, while export levels have been set this week at $405-420/mt FOB depending on the seller with $400/mt FOB and maybe below being possible in deals. In particular, information about $425-430/mt CFR effective to Italy has been actively discussed in the market this week. “Higher scrap is not a sufficient reason for HRC prices to increase. At the end of the day all depends on the end-user industrial demand, which remains subdued,” a Turkish producer told SteelOrbis.


Most Recent Related Articles

Russia’s MMK to restart mill 2500 by late July, to focus on big coils

Turkish mills cuts HRC prices, local buyers still hesitant

Two out of three Russian mills not yet active in HRC sales for August

Ukraine raises HRC export offers, Russia inactive being sold out

HRC deal prices in UAE pulled down by low demand, high stocks