Turkey’s flats products market continues suffering from a lack of the demand, while weaker scrap prices and aggressive import hot rolled coil (HRC) offers and deals seen over the past couple of weeks have in the end put serious pressure on domestic pricing.
According to sources, the tradable HRC local market price in Turkey has decreased to $620-650/mt ex-works, from $650-680/mt ex-works offered by mills a week back. The lower end of the range is not yet to be seen in official indications, but most market players consider it is available in negotiations. Exports have been almost at a standstill since EU buyers are not interested in Turkey’s HRC, available at $620-640/mt FOB from some mills. They are getting much more attractive offers from Asia, which are at €600-630/mt CFR depending on the supplier.
Following rather active trade in the past few weeks, HRC import activity has slowed down. According to sources, around 20,000 mt have been booked from Russia at around $575/mt CFR, in addition to the previous 30,000-40,000 mt purchased at $565/mt CFR and above. China seems to have traded a cargo at $590/mt CFR, but, according to market players, it may have been for a higher steel grade. At the end of the week, prices from China have rebounded to $570-580/mt CFR, from $550-570/mt CFR early in the week.
Lower HRC prices and insufficient demand have pulled Turkey’s coated and cold rolled coil (CRC) prices further down. In HDG segment, though the some of the official offers are still at $880/mt ex-works base, the workable prices are estimated at as low as $840-860/mt ex-works. PPGI domestic offers are at $950-1,010/mt ex-works officially, but buyers insist on lower than $950-960/mt ex-works, suppliers say. Local CRC offers have dropped by $20-30/mt over the past week to $750-780/mt ex-works, though some re-rollers are still trying to sell at $800/mt ex-works.