No major change has been seen in Turkey’s HRC market over the past week, based on slightly limited supply due to maintenance work and a certain optimism in the EU. However, demand for now has remained quite limited, especially in the domestic market. Import offers have remained rather high, with a tendency towards a slight increase, with interest in transactions still being limited. Pressure still exists from the buyers’ side, especially in the local market in Turkey due to weaker scrap prices.
Domestic HRC prices in Turkey have remained at $555-565/mt ex-works for November deliveries despite weaker scrap prices. Mills do not seem to be in a position to provide discounts due to somewhat limited supply as well as reviving demand and rising workable prices in the EU. Export offers have been set officially at $535-545/mt FOB, slightly down over the past week, with negotiations continuing mainly with customers from southern EU and some eastern European countries. According to sources, a large deal has been closed at around $515-520/mt FOB to Slovenia, but most market sources consider the level to be too low when compared with domestic HRC prices in Turkey. As for exports, HRC is available for November shipments.
Import offers from China are at $511-520/mt CFR for November shipment and for Q195 3mm and up, relatively stable over the week. Bids are quite rare and hardly exceed $505/mt CFR from re-rollers. Some demand may be heard from pipe-making companies which usually buy with higher extras. The workable prices from Malaysia are at slightly below $540/mt CFR with no details revealed, while Egypt, according to some sources, has increased its offers to $545-550/mt FOB or around $560-565/mt CFR. Russian mills have remained present in the market and a non-sanctioned HRC producer has managed to sell up to 20,000-25,000 mt of November shipment material at $515-520/mt CFR, down $5/mt from the initial offers.
Turkey’s CRC products are now at $640-660/mt ex-works base in the domestic market and at $630-640/mt FOB for export destinations. Local HDG 0.5 mm Z100 offers have been maintained at $740-760/mt ex-works, while export offers are now at $720-740/mt FOB, up from the previous week, while bids from some customers are mainly below $700/mt FOB. Local and export PPGI prices are at $830-850/mt and at $810-840/mt, on ex-works and FOB basis, respectively.