The price increase voiced by Turkey-based hot rolled coil (HRC) producers two weeks ago has failed to gain acceptance in the local market as flat steel demand and consumption have been low. Export activity has been gradually improving. However, while domestic sales in Turkey have been limited, the volumes traded overseas are not sufficient enough for Turkish mills.
Domestic HRC prices in Turkey have settled at $405-415/mt ex-works base this week, while earlier this month local mills were voicing offers close to $430-440/mt ex-works. “Costlier scrap triggered higher HRC offers, but the truth is that demand is not strong enough to absorb that,” a trader told SteelOrbis.
Export prices are nowadays mainly at $405-410/mt FOB in offers, showing a decline, but discounts are possible. According to sources, around 5,000 mt have recently been sold to Spain at $420/mt CFR or around $395/mt FOB, SteelOrbis estimates. Some discussions are ongoing with buyers from Italy and Antwerp as well.
In the import segment, CIS-based mills are mainly out of the market. The latest deals were reported as being closed by Metinvest for over 50,000 mt at $375-380/mt CFR. Russian mills sold over 160,000 mt altogether in the first half of April mainly at $375-390/mt CFR depending on the supplier. Offers from South Korea to Turkey have been set at $400/mt CFR this week, SteelOrbis has learned.
