HRC prices in Turkey have continued ascending this week, mainly based on the higher import prices coming from Asia, but also due to the fears there might be delays in deliveries of earlier booked cargoes from China and Malaysia, along with the risks in dealing for new cargoes for May shipment. While Turkish mills are trying to take advantage of the situation, waiting for some demand to be redirected to local HRC, the overseas suppliers who can offer short lead times to Turkey - Russia and Egypt - have also been benefitting from the situation.
By the end of the week, the official HRC prices in Turkey have settled at $605-620/mt ex-works base, mainly for May deliveries, but some April volumes might be still allocated, buyers report. Last week, the range was wider at $590-620/mt ex-works, and now some of the sources believe below $600/mt ex-works is still reachable, but for decent orders. Some mills, however, according to buyers, have started voicing $620-625/mt ex-works for end-of-May and June deliveries. In the export segment, while trade with the EU has slowed down recently, HRC offers from Turkey are still at $600-610/mt FOB depending on the supplier, with no official levels at $590-595/mt FOB heard anymore. Still, sources mainly believe that every potential cargo will be negotiated separately according to the buyer’s requirement and considering the CBAM estimations and risks facing deliveries from Asia.
The latest HRC import offers from China have been mainly at $535-545/mt CFR for May shipments and depending on the region, up from $530-535/mt CFR available earlier this week. Freight rates from China for 50,000 mt lots are currently estimated at $50-55/mt. No firm offers from Malaysia have been reported yet, but buyers expect the supplier to insist on around $600/mt CFR. Egypt, being another duty-free origin for HRC in Turkey, had lastly offered at $600-610/mt CFR for small lots, up $10/mt from the previous transaction. By the end of the current week, however, the mill has withdrawn its offers.
Ex-Russia non-sanctioned HRC offers stood at $530-540/mt CFR this week for May shipments, up from the earlier voiced $525/mt CFR. Moreover, the supplier, according to sources, has managed to trade decent lots at up to $535/mt CFR and even slightly above. Russian sanctioned HRC was on offer this week at $490-495/mt CFR, but the MENA region was the preferred sales target.
