Turkish re-rollers have been resisting buying hot rolled coil (HRC) from abroad as their finished product exports are currently weak, especially their exports to the EU amid tough competition with India.
This week, HRC from Serbia has been on offer to Turkey at $515/mt CFR, though some prospective buyers claimed to have received offers at $505/mt CFR. Around 15,000 mt of HRC from Romania were sold mostly to traders in Turkey at $505-510/mt CFR for September shipment. “EU origin HRC is a better alternative as there is no import duty, therefore no obligation to export,” a trader noted.
HRC of other origins appear to be under pressure from the re-rolling side in Turkey. MMK is quoting $505/mt CFR for October shipment of HRC of big HRC coils, while NLMK is not in the market. Ukraine has been in the market with $500-505/mt CFR Turkey, with bids being at least $10/mt lower.
India's Essar Steel has offered a sizeable lot to Turkey at slightly below $510/mt CFR for Septembet shipment, with some discounts possible. However, the interest from Turkish re-rollers is limited, while pipe makers would probably target $490/mt CFR or slightly above.
Offers from Egypt’s Ezz Steel at $525/mt CFR are not workable.