Turkish hot rolled coil (HRC) producers have started the new week with another price increase in their domestic market. Such a policy is supported by the almost complete absence of import offers, as well as by strong scrap and steel slab price levels.
Local HRC offers in Turkey have increased by another $10/mt over the past week to $470-475/mt ex-works base, while some service centers, according to sources, have received prices as high as $485/mt ex-works. The absence of competition in the import segment is said to be the main reason for the price hike, taking into account that in such a situation local buyers are basically limited to domestic HRC sourcing only. CIS-based suppliers are mainly out of the market for now, while European mills would find it hard to offer reasonable levels to Turkey due to the increased strength of the euro against the dollar. In addition, Asian mills are not active in the Mediterranean region due to far more beneficial sales to nearby countries.
In such a situation, local re-rollers in Turkey have taken a step back and most of them have decided to not offer for now. Still, some of them are reportedly voicing $540-560/mt ex-works for cold rolled coils versus $520-540/mt ex-works valid last week.
Steel slab prices in Turkey have been solidly increasing as there is demand for the product taking into account that the situation in the HRC segment is positive for the mills. According to sources, CIS-based producers are targeting no less than $415-420/mt CFR now, versus $408-410/mt CFR in deals last week. An ex-UK offer was reported by market sources at $435/mt CFR.