Turkish hot rolled coil (HRC) producers, being largely sold out for January production, continue to insist on high offers for their products, both locally and for export. For now, buyers are resisting but, if the new levels are widely accepted, there may be more room for higher import slab levels to be accepted.
Domestic HRC prices in Turkey are set at $450-460/mt ex-works from two mills, while one producer is said to be taking its time to offer for February production. Some buyers, however, report they have received as high as $470/mt ex-works for small orders.
Export offers from Turkey are mainly indicative and are at $450-460/mt FOB for February shipments. Although some sales have been reported at $460/mt FOB to Italy for January shipments, such a level is not considered widely workable among buyers. One of the reasons is the still competitive offers from India, heard at $460-465/mt CFR to the south of the EU. “Today, if I can get $435-440/mt FOB base, immediately I confirm,” a seller said.
As a result, buyers are still taking their time to accept the most recent price hike by the Turkish HRC mills. The latest deals for sizeable lots have been closed locally at $430-440/mt ex-works and at $420-430/mt FOB for export. However, if the higher prices are accepted at the end of the day, this will open more doors for slab sellers to Turkey. Last week, two deals - for 30,000 mt and 20,000 mt - were closed at $385/mt CFR, up $7-10/mt from previous levels. New offers are expected at $390-400/mt CFR for January production, while the rolling cost stands at a minimum of $35-40/mt, SteelOrbis understands.
