The mood among Turkey’s hot-rolled coil (HRC) market players remains mainly pessimistic with low demand seen in both the domestic and export markets. Domestic and import prices have slid again over the past week, while for exports negotiations seem to be rate taking into account the lack of firm inquiries.
According to sources, in the domestic market in Turkey, the workable levels for HRC for February deliveries have decreased to $860-870/mt ex-works, versus $870-890/mt ex-works seen last week. However, some buyers say $850-855/mt ex-works may be achievable from some suppliers, while some of them prefer to stick to $880/mt ex-works in the official offers. Limited export activity has continued to add pressure on local prices as well, taking into account the almost non-existent trade to the EU. In addition, buyers from North Africa had restocked enough in the previous weeks and have taken a pause for now. The workable level for ex-Turkey HRC is considered to be at $850-870/mt FOB, but levels $10/mt higher and lower have been also heard in the market depending on the supplier and order details.
In the import segment, according to buyers, NLMK has sold out the remaining HRC for January production at $850-855/mt CFR, down from a $860/mt CFR sale closed last week. Ukraine’s Metinvest lastly booked 30,000 mt of HRC in total at $820-840/mt CFR depending on the coil weight, down by $10/mt from the previously traded levels. Currently, there are some rumors about ex-Ukraine prices at as low as $800/mt CFR, but most market players consider this level as market manipulation. “There are bids at $790-800/mt CFR levels but there is no offer like that. In this market, it is hardly possible for them [Metinvest] to go far below $820-830/mt CFR, at least for now,” a large trader told SteelOrbis.
India is also in the market, having decreased prices by $20/mt over the past week. One of the major mills has been offering at $850-855/mt CFR Turkey, but this level is not considered workable.
