Turkish hot-rolled coil (HRC) producers have increased their prices, as had been expected, mainly offering for April production and not being under pressure to sell. In addition, there are no aggressive import offers anymore as Indian mills have increased their prices for March rolling, and most CIS-based suppliers are taking their time to announce firm offers. However, the cautious mood regarding the limited HRC allocation in the market, aside from the successful sales by the Turkish mills, is being exacerbated by the temporary daily production cuts in the country, triggered by the natural gas supply shortage, and followed by electricity cuts for industries imposed by the government.
Currently, the domestic HRC prices in Turkey are at $850-870/mt ex-works base for April production, up by $10/mt over the past week. One of the mills, according to sources, has been offering at $880/mt CFR Marmara. As regards exports, the average price has been set at $850/mt FOB, although somewhat lower levels are said to be achievable as well.
Mills report that demand has been decent and that some April volumes have already been sold, partly as buyers fear allocation will be significantly limited. Following the government instructions to temporarily cut electricity supply to local industries, a lot of steel producers had to take a decision to slow down their production. Some of those who have longs production as well have chosen to stop for around 10 days and to perform a one-shift cut in their daily production. One of the integrated HRC mills, according to sources, has stopped its production and sales for three days. “This is temporary and will last for a couple of days only, and might not have a tremendous effect in terms of volumes. But people are afraid as also imports are not so much available,” a trader told SteelOrbis.
In the import segment, offers of ex-India origin HRC from various suppliers have been reported at $810-825/mt CFR, up from around $800-805/mt CFR at the end of last week. A medium-sized cargo, according to sources, has been booked at $810/mt CFR. CIS-based mills are taking their time to announce prices for the next round of sales and the anticipated level is foreseen at not less than $825-830/mt CFR.
