Low domestic and export demand, coupled with the disastrous situation in the currency market, have taken their toll on hot-rolled coil (HRC) prices in Turkey. Local mills have been forced to cut their prices significantly since earlier in December, even though most of them are selling for February, while some of them claim to be already sold out. The main reason has been the low demand from end-users, partly resulting from the significant weakening of the lira lately.
In the local Turkish market, various information has been heard this week. The official levels of most producers have been settled at $830-850/mt ex-works, versus $850-870/mt ex-works mainly voiced early this week. Some suppliers, according to sources, are still at closer to $860/mt ex-works, having limited availability. However, there have been rumors of $790-800/mt ex-works levels being available in the market, but the information has been disproved by sellers. According to sources, some pipe-makers have been placing bids at around $810/mt delivered, which is more or less equivalent to the abovementioned rumored price. “It is a ridiculous price for the HRC mills at the moment, but the pipe-makers are also right because the profile market is dead,” a producing source told SteelOrbis.
Export HRC offers from Turkey have decreased by around $30/mt depending on the supplier to the general levels of $810-840/mt FOB base. According to sources, the higher end of the range was fixed in deals to Egypt around last week, while a small sale to the southern EU has been closed at the lower end of the range. Generally, export demand is considered to be unsatisfactory, sources say.
In the import HRC segment, Ukraine-based supplier has sold out the last volumes for January production at $815-835/mt CFR Turkey, depending on the coil weight. According to sources, the producer is slowly starting to offer for February volumes at the similar levels. Russian mills are out of the market for now. In addition, around 10,000-15,000 mt of HRC were traded last week from India at $835/mt CFR, down $20/mt from the initially targeted level. This week, the suppliers are at $820/mt CFR in offers and $10/mt lower levels are considered possible under negotiations.
