The uptrend in Turkey’s hot rolled coil (HRC) market has continued with the key driving factor remaining same - limited allocation for short delivery times. Mills are said to have almost completed July production sales and have started to offer for August. In addition, the continuous price increase in the EU provides support for the mills’ export activities.
By the middle of this week, domestic HRC prices in Turkey have been increased once again. Some mills have started offering August production at $930-940/mt ex-works, while some are in the market at around $920-930/mt ex-works. Buyers believe $5-10/mt discounts are still possible, while last week the general range of workable prices and official offers was at $885-915/mt ex-works depending on the seller and the order size.
In the export segment, offers from Turkey were standing at $900-910/mt FOB for July-August shipments earlier this week. As reported earlier, a deal was closed to Italy at $890/mt FOB, while inquiries keep coming from southern Europe and the Balkan region. It is worth mentioning that some mills have started offering at $920/mt FOB for exports starting from today, March 31. Some market players have been discussing sales to the US at $940-950/mt FOB and above, but these prices are considered to be irrelevant according to the current market situation, since they were traded to a producer’s company based in the US.
Import offers from the CIS are vague for now, mainly because the mills there have closed their May production sales and are not in a rush to announce prices for June, taking into account the positive market situation. According to sources, a Ukraine-based supplier has been voicing $900-920/mt CFR to Turkey depending on the coil weight. Russia’s MMK is expected to return to the market with similar levels, up from $880/mt CFR offered last week.
