Local hot rolled coil (HRC) prices in Turkey have hit a new high in two upward steps this week, while the situation in the markets has become more and more heated. Import offers from the CIS are expected to be firmly set at higher levels shortly, but there are already some discussions at higher levels than early this week, sources report. In the meantime, the higher HRC levels in Turkey have created perfect conditions for CIS-based slab suppliers to increase their prices.
By the end of the week, Turkish mills have set their offers for local HRC at $700-705/mt ex-works base, while some are said to be still ready to deal at $695/mt ex-works. The latest deals in the local market have been reported at $670-685/mt ex-works. As regards exports, offers have also touched $700/mt FOB, with the most recent deals closed to Europe at $680-685/mt FOB for small lots, SteelOrbis understands. Turkey is currently selling for March production.
The positive HRC trend in Turkey has created good room for an increase in slab prices from the CIS. The latest offers are reported at $590-600/mt CFR for February shipments, up by $30-40/mt since late last week. Some sources say that the mentioned range has already been fixed in deals, but the information has not been confirmed by the time of publication.
Import HRC offers from the CIS are also expected to be revised shortly, taking into account another price rise in Turkey. The latest offers from one of the Russian mills have been reported at $665-670/mt CFR, while another producer has been offering at $650/mt CFR, SteelOrbis has learned. Early this week, offers from Ukraine were at $650/mt CFR for small coils and at $660/mt CFR for big coils. Negotiations are underway, but the producer may revise its offers next week, sources think.
