In Turkey, the new week has started with rather firm pricing for HRC, taking into account that the lively import scrap booking activity last week was carried out at increased prices. In addition, there are expectations for a rise in energy tariffs starting from April, which will push up the costs of production. However, given the moderate levels of demand for Turkish HRC seen mainly in the export markets, but also in the local market, Turkish mills are currently not under much pressure. In addition, competition with imports is not so strong currently, after previous bookings from China, fears of active buying from Asia in general, as well as the absence of some HRC suppliers from the Turkish market.
Most domestic HRC offers in Turkey have been set at $630-640/mt ex-works, the same as a week ago, for June deliveries. The $620/mt ex-works level is considered possible to reach from some mills, but buyers’ interest is closer to $610-615/mt ex-works for medium lots. As regards exports, Turkish mills are mainly aiming at $620/mt FOB for June shipments. According to sources, over the past two weeks up to 40,000 mt have been sold at $610-620/mt FOB to European markets.
Import offers from China for Q195/SS400 material have remained relatively stable early in the week at $535-540/mt CFR, while offers from the first-tier mills have been set at closer to $550/mt CFR. Ex-China cargoes are available for May shipments still. No deals have been confirmed yet from Malaysia with the current negotiations being handled at $610-615/mt CFR for May shipments, in line with last week. HRC offers from Egypt have still not been announced in Turkey. According to the market sources, the producer has limited allocation for May, most probably resulting from the shortage of natural gas supply in view of the current situation in the Middle East.
The non-sanctioned Russian mill has not yet started offering HRC for June shipment to Turkey, while non-sanctioned material for May production is currently indicated at $505-515/mt CFR. The buyers’ price idea is closer to $490-495/mt CFR.
