Turkish hot rolled coil (HRC) producers are still having trouble trading their material since exports are quite challenging in the EU and locally buyers are still cautious. The presidential election will be decided in a second round and the political situation has remained tense. Accordingly, domestic buyers’ HRC purchases are still limited as they are not willing to take additional risks. In the meantime, Chinese prices have decreased once again, putting additional pressure on Turkish mills.
Currently, ex-China Q195 HRC is offered at $585-595/mt CFR, down from $605-615/mt CFR over the past week, but up from $570-575/mt CFR which was the lowest workable level in early May.
India is offering at $625-630/mt CFR, while South Korea is offering at $650/mt CFR, buyers report.
Russian mills have preferred not to offer for now, reporting the highest bids for their materials at $580-590/mt CFR. Russia’s export allocation is still limited since a lot of tonnage is still going to its local market and to nearby CIS markets.
In this situation, Turkish mills are offering at $700-720/mt ex-works, down $15/mt on the upper end over the past week. Some buyers believe they can get HRC at $690/mt ex-works and even below.