Trade in Turkey’s HRC market has been somewhat subdued recently, particularly in the export segment, since demand from Europe and North Africa has been slowing down. Locally trade is somewhat livelier while buyers prefer restocking in smaller lots domestically instead of taking risks for large ex-Asia lots. Still, sales are not quite enough for the mills to raise prices, but are sufficient to help them avoid discounts. In addition, import scrap prices are on the higher side now, justifying Turkish mills’ unwillingness to decrease prices. Import offers in the meantime are relatively stable, while suppliers of nearby located origins, such as Egypt and Russia, have a greater chance of attracting Turkish buyers compared to China with its long lead time.
Currently, import HRC offers from China for Q195 3mm and up material are at $485-493/mt CFR for July shipments, in line with most offers last week, but down around $5/mt from last Friday’s levels. According to sources, buyers are aiming to book at $480/mt CFR but no deals have been reported yet. In fact, sales from Russia are expected since Russian mills are offering for June-July production and at levels which are not drastically different from the Chinese ones. A sanctioned Russian mill is offering HRC at $470-485/mt CFR depending on the buyer, while the non-sanctioned mill is targeting $495-500/mt CFR in the current round of sales.
Other suppliers are offering much higher levels. Particularly, Egypt remains at $560/mt CFR for July shipments, while Malaysia and Japan are offering at $555/mt and $520/mt CFR, respectively, for the same lead time.
Local HRC prices in Turkey are at $565-575/mt ex-works for July deliveries, while some offers have been voiced at slightly higher levels. Export offers for July shipments are at $540-560/mt FOB, relatively stable from last week. The latest sales of HRC, according to sources, have been closed for medium-sized lots to Italy and Ukraine within the mentioned price range, SteelOrbis has learned.
