While Turkish hot rolled coil (HRC) producers have remained fairly firm in their domestic offers, partially supported by a rebound in import scrap prices, import HRC prices have kept fluctuating. The uptrend seen from the end of last week has turned out to be short-lived and fresh ex-China offers are reported to be at least $10/mt lower compared to early this week. Still, buyers are maintaining a cautious stance, aiming to evaluate market conditions a bit more closely.
While earlier this week ex-China prices for 45,000 mt lots of Q195 HRC, 3 mm and higher, have been reported mainly at $500-503/mt CFR for October shipments, the current offers from several large traders stand at $490-493/mt CFR. Some traders, however, are reportedly testing even $485/mt CFR for the same lots. “We do not hear many negotiations. Maybe buyers count on some more discounts, but for re-rollers such a price is in theory suitable,” a producing source told SteelOrbis.
According to sources, some Turkish re-rollers preferred to booked HRC from Egypt instead of China and paid much higher than the Chinese offers, but still lower than the domestic HRC prices in Turkey at that time. Over the past 10-12 days Turkey booked at least 50,000 mt in several medium and small lots at around $570/mt CFR for October shipment. “It might seem too high, but Egypt is a duty-free origin and there is no headache with export licenses. The prices were still cheaper than domestic prices, while the lead time is nice and short,” a source commented.
Turkey’s domestic HRC offers have remained officially at $580-600/mt ex-works base for early November deliveries. A few sources, including sellers and medium-size buyers, have reported that $570/mt ex-works is currently acceptable, although there is no huge demand at the moment.
As for exports, the official offers from Turkey to the EU are at $570-585/mt FOB for late October-early November shipments, but bids from potential buyers are much lower than that. In the EU, offers for ex-Turkey HRC have been reported at €560-580/mt CFR, down €5-10/mt over the week, while overall the import price ideas of European buyers do not exceed €550/mt CFR, the local sources say.
