The rapid price increase seen in Turkey’s flats market has naturally triggered higher offers for slabs from the CIS. Moreover, scrap levels keep climbing and make the general market expectations rather positive for now.
According to sources, at the end of last week a medium-sized batch was sold to Turkey at around $530-535/mt CFR or around $520/mt FOB, while earlier the sellers’ targeted prices were closer to $500-510/mt FOB. Later, as the price rise for HRC in Turkey has gained pace, some slab suppliers from Russia and Ukraine have started aiming at $560/mt CFR or close to $540-545/mt FOB. These levels are considered as non-workable by Turkish buyers for now. Suppliers, however, intend to avoid discounts and to increase offers further while the flats market remains supportive, SteelOrbis understands. “Maybe tomorrow prices will be $10-15/mt higher and actually this would be a right price according to Turkey’s local HRC offers,” a source said. Currently, offers for HRC in Turkey are at $660-670/mt ex-works. Some sources believe $550-555/mt CFR levels from the CIS will be paid by the Turkish mills as of today.
