The Turkish HRC market is going through another price increase, triggered by the limited allocation and supported by the recent rise of import scrap prices. Currently, local mills are offering for end of February-March deliveries.
Some mills have increased their domestic HRC offers by around $10-15/mt over the past week to $500/mt ex-works. In the meantime, a Marmara region-based producer has started the week at $520-530/mt ex-works for March deliveries, versus $500/mt ex-works offered a week ago. According to market sources, the latest HRC deals in Turkish domestic market were closed within $480-490/mt ex-works for February lots.
Although local HRC demand remains moderate and export sales are quite slow, market players generally believe there may be another rise in HRC prices. The key reason in the limited allocation for March from the CIS as well as a possible shortage of supply from the Turkish mills as well.
Import slab prices in Turkey are set this week at $420-425/mt CFR, up from the $405/mt CFR levels fixed in the deals in early December. Some higher levels might be acceptable if there is some interest in HRC above $490/mt ex-works, SteelOrbis understands.