HRC producers in Turkey have decided to increase their offers by the end of the week, rather following the increase in the latest import scrap deals than the demand fundamentals. Although the mills are not quite under pressure yet to sell while offering for end of April and May production and having witnessed some good sales volumes in February, the new price levels are considered indicative. Local demand has been lagging behind, while regarding exports the acceptance of higher prices in the EU is questionable, although European mills are now also targeting a price rise.
The latest domestic HRC offers in Turkey have been reported at $565-575/mt ex-works base, while earlier this week the levels of $550-565/mt ex-works had been valid. As for exports, some of the mills are targeting $570/mt FOB now, up from $540-560/mt FOB seen last week. “I honestly do not think a price that high might be accepted in the EU, but why not in the US, over time?” a market source told SteelOrbis. In fact, one of the Turkish mills has already traded up to 10,000 mt of HRC at around $550-555/mt FOB base to the United States.
Import offers from China have settled at $490-500/mt CFR for Q195 HRC of 3 mm and higher in 45,000 mt lots for end of April and early May shipments, up from $488-495/mt CFR seen earlier this week. Russia has been offering at $505-510/mt CFR for April production, while Egypt sold around 20,000 mt of HRC to Turkey last week at $545/mt CFR.
