Import hot rolled coil (HRC) offers from Asia in Turkey have remained numerous and competitive and this continues to put pressure on workable domestic offers in the country. Still, local trade is slow for now, while some mills choose to temporarily decrease production as they want to avoid larger discounts since their costs are high.
The latest import HRC offers from China are at $580-590/mt CFR, in line with the offers and deal prices of last week. According to sources, Vietnam and Taiwan have decreased their prices for Turkey by $15/mt and $20/mt, respectively, to $590/mt CFR. The lowest ex-India offer has been reported at $610/mt CFR, while one mill is offering as high as $630-640/mt CFR, sources say. South Korea is officially at $615-620/mt CFR, but buyers report $590-600/mt CFR is workable for large orders. “Actually, nothing above $600/mt CFR will work today and, if premium origins are at this level and below, then Russia has to be at $550-570/mt, at least the sanctioned mill,” a trader told SteelOrbis.
In such a situation, local HRC prices in Turkey are at $660-680/mt ex-works base and, although the lower end of the range is not voiced officially, buyers report it is achievable from some mills. Some producers, however, are still at $700/mt ex-works, which is not at all workable. As regards exports, the current price level is estimated by market players at $650-680/mt FOB, down $20-30/mt over the past week. However, despite the discount, export business activity has remained extremely slow.
