Some fresh import hot rolled coil offers have been reported in the Turkish market, coming from Russia and the EU. The levels indicate some decline as compared to the previously workable prices; however, Turkish customers currently do not seem to be in a position to purchase.
According to sources, Russia’s MMK has around 20,000 mt of allocation of big coils to sell, while its target price is $450/mt FOB or around $465/mt CFR. It is worth mentioning that last week Ukraine’s Metinvest was selling small coils at $475/mt CFR and slightly above. Moreover, Turkish buyers seem to be not interested in MMK’s offers as no bids have been reported. Offers from another ex-Russia seller Severstal have been reported by several Turkish sources at around $460-465/mt CFR depending on the euro exchange rate. However, the level is not considered attractive, SteelOrbis understands. “I assume $410/mt CFR would work now,” a source said.
Some offers are coming from alternative sources to the usual destinations of CIS-based exporters, but at much higher levels. Ex-Netherlands HRC is available at $485/mt CFR, while some South Korean material has been priced at close to $500/mt CFR.
Turkish HRC is priced mainly at $480-490/mt ex-works/FOB, though these levels are not considered workable. While local customers insist on some medium discounts, foreign customers are targeting $420-430/mt FOB. Some sources believe that the prices are definitely heading down and that Turkish mills will be selling at a maximum of $460-470/mt ex-works/FOB in the coming weeks.