Following the sharp rise in import scrap prices, Turkish steel producers have been aiming to increase their product prices, as expected. However, while in the longs segment their efforts have been relatively successful, in the flats market the uptrend still lacks the support of demand from end-users. In addition, export activity has been slow due to the absence of European buyers.
Last week, domestic hot rolled coil (HRC) prices stood at $630-650/mt ex-works and $620/mt ex-works was possible early this week. However, in the latest offers the local Turkish mills are voicing $640-660/mt ex-works and up to $670/mt ex-works in some cases. Mainly material for September delivery is available in the market. In the import segment, mostly Russia is present with around $590-595/mt CFR as the lowest price from one mill and up to $600-610/mt CFR from the other two producers. The latest deals for Russian origin HRC were closed around 10-15 days ago at $580-600/mt CFR, as SteelOrbis reported earlier.
Market players have doubts that Turkish HRC producers will succeed in achieving higher prices in the short run, mainly as the support from the re-rollers’ side is minimal. In fact, the prices for most product groups have softened over the past week. Domestic CRC prices are at $720-760/mt ex-works, down from the lowest level of $760/mt ex-works seen early last week. HDG offers are at $780-820/mt ex-works, down $20/mt on the lower end over the past week, but mostly prices below $700/mt ex-works are considered workable. Turkish PPGI is at $850-890/mt ex-works, down $30-40/mt over the past week. Coated and the cold rolled steel is on sale for August-September production.
