Local and import hot rolled coil (HRC) sellers to Turkey have remained bullish in their offers even though the general sentiment in the market is not so optimistic, taking into account Europe’s protectionist measures. In addition, domestic consumption in Turkey remains limited due to slow industrial activity.
Domestic HRC prices in Turkey for July-August deliveries are at $420-430/mt ex-works, while some mills are taking their time to offer and may announce even higher levels, buyers expect. Some customers report that $415/mt ex-works levels are possible to get in the Iskenderun region for sizable orders. Small lots have reportedly been booked in the local market at up to $420/mt ex-works and slightly above. However, the general level of demand remains low.
In the export segment, around 40,000 mt were sold to China at $420/mt CFR effective, sources say. The deal level is estimated at $380-385/mt FOB base, while since last week mills’ intentions were voiced at $405-420/mt FOB. The European quota reduction, coupled with the ongoing antidumping investigation, is the question of the day. “We now have at least 30-35 percent less to sell and still no one buys because of the investigation,” a trader told SteelOrbis.
In the import segment, Ukraine’s Metinvest has suddenly increased prices for Turkey by around $25-30/mt over the past week to $405-410/mt CFR for small coils and $420-425/mt CFR for big coils. Similar levels are offered to nearby markets such as North Africa, Serbia and Macedonia, SteelOrbis has learned. Russian mills are not yet active in the Turkish market. NLMK prefers to watch and is expected to announce prices for July soon. MMK’s offer remains at $395/mt CFR as an indication; the producer is focused on revived local sales and is not paying much attention to exports just yet. “They might have a very much limited allocation to sell this time if any at all,” a source said. Severstal, according to traders, has been voicing $420/mt CFR.