Turkey-based hot-rolled coil (HRC) producers have become significantly more flexible in negotiations this week, facing extremely slow demand and weak buyer activity. Some of the mills have officially decreased their prices by $50/mt over the past week, while some prefer to collect bids and to work with each customer individually.
Earlier this week, the achievable prices for HRC in Turkey were at $1,180-1,230/mt ex-works base for July deliveries. However, later on some of the producers started offering $1,150/mt ex-works, while some mills, according to large buyers, would agree to sell at $1,100-1,130/mt ex-works. Still, some of the medium-sized buyers report they received $1,200/mt ex-works in response to their inquiries.
As regards exports, several sources reported offers at $1,150/mt FOB for small inquiries, but, despite the significant price drop, the level is still not workable in the EU, taking into account the weak market and competitive offers from Asia.
“We cannot say that HRC prices in Turkey are firm today since some of the sellers think it is meaningless to be aggressive now with the dead market conditions. After Ramadan, they will settle the price,” a trader said. “Actually, the price doesn’t mean anything, producers are just trying to catch some tonnages,” a producer mentioned.
