Hot rolled coil (HRC) prices in Turkey have declined over the past week, pulled downwards mainly by the aggressive ex-China offers, coupled with pressure from buyers. In addition, trading activity on the export side has been on the low side given the approaching summer holiday period in the EU.
In the domestic market in Turkey, official HRC offers are at $580-585/mt ex-works base for September deliveries and for large buyers, down $5/mt on the upper end of the range over the past week. Some smaller buyers, however, have stated they received up to $600/mt ex-works for a shorter lead time. At the same time, several sources have confirmed that $570-575/mt ex-works/CFR Marmara is available from one of the mills, but again for decent tonnages. “Much lower prices will not trigger sizeable demand as most buyers are reluctant to restock ahead of the holidays in Europe,” as one source stated.
On the export side, the offer level is officially at $580-585/mt FOB with $570/mt FOB considered possible for large tonnages. Earlier this week, there was information circulating in the market regarding negotiations at as low as $550/mt FOB, but it was rejected by several potential suppliers.
The import segment is still ruled by ex-China offers with the indications from all other potential suppliers not being competitive. While at the end of last week Chinese HRC was available at $542-550/mt CFR, the latest offers have slid to $535-540/mt CFR for September shipments. Several re-rollers are said to be currently negotiating to book sizeable tonnages, but there has been no confirmed information about actual deals happening.
