Ex-Turkey HRC prices fall, bids collapse

Thursday, 19 March 2020 16:33:19 (GMT+3)   |   Istanbul

Low domestic and international demand, coupled with a sharp fall in import scrap prices, have forced Turkish mills to decrease their hot rolled coil (HRC) offers. Bids, however, have collapsed, in the export segment specifically.

Export offers for HRC from Turkey for May shipments have been reported at $480-490/mt FOB by the end of the week, down by $5-15/mt since earlier this month. Some traders assume the mills are open for some additional $5/mt discounts. However, buyers’ bids, from the EU specifically, have been voiced far below the mentioned levels. European customers are seeking to pay $420-430/mt FOB base at the highest, taking into account the known risks. In particular, there is a 20,000-30,000 mt order from an Italian pipe producer with similar bids, SteelOrbis has learned.

The workable levels for some alternative sales destinations are not much better. Offers to Egypt have been voiced at $485/mt FOB or $500/mt CFR, with bids being $30/mt below this level. Pakistan, according to sources, has been ready to pay $470/mt CFR to Turkey, with the freight estimated at around $45/mt.

In the local market in Turkey, offers have decreased by $10-15/mt over the past week to $480-495/mt ex-works, depending on the producer. The product is available mainly for May deliveries. Business activity has been limited due to currency fluctuations and the overall market slowdown amid the consequences of the spread of the virus spread.

In the import segment in Turkey, the latest offers from Indian mills have been at about $480-485/mt CFR, with similar levels reported from some EU-based sellers. In the meantime, Russia’s NLMK was successful in earlier selling 20,000 mt of HRC at $490/mt CFR and slightly above. However, according to sources, currently Turkey would hardly pay above $460-465/mt CFR for imports.

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