HRC mills in Turkey have been forced to give in to pressure from buyers, especially on export prices, since demand, particularly in Europe, has been quite low. In addition, import scrap prices have been falling lately and, coupled with the relatively slow domestic demand, it has put pressure on domestic workable prices too. In the import segment, China remains the main supplier, while those from Russia, Malaysia and Egypt prefer to stay away from negotiations for now. While no fresh negotiations have been reported for Chinese material, the non-VAT indications have once again vanished from the market, following the tightening of control over such offers in China.
Local HRC prices in Turkey have settled at $620-640/mt ex-works this week, down $5-10/mt from early last week, mainly for August and early September deliveries, while buyers’ targets for large and medium volumes are at $610-615/mt ex-works. As regards exports, however, while some producers are holding on to $630/mt FOB in official offers for August-September shipments, some are already ready to negotiate at $600-615/mt FOB depending on the mill. However, even at these levels EU buyers are showing some resistance, citing the quota uncertainties and accompanying risks. Some bids from Europe have been voiced at $590/mt FOB. “With such a market, it might become a reality very soon,” a trader told SteelOrbis. “Europe would be more eager to buy for the fourth quarter once the quota issue is clear and, if you have a lot of August material to be sold, this should be the price, or even lower,” he added.
Import offers from China are now at $550-558/mt CFR for material from second-tier mills and for August-September shipments. It is noteworthy that low prices of around $540/mt CFR have vanished from the market as China has once again tightened control over the non-VAT trade. No negotiations have been reported lately, not since the latest deals at $538/mt and $545-547/mt CFR depending on the buyer, as SteelOrbis reported.
