Local and import prices for hot-rolled coils (HRC) in Turkey have marked another significant decrease over the week due to buyers’ resistance, falling scrap, the weak export segment and generally pessimistic moods regarding the situation in the Asian and European markets. In addition, the demand and prices for Turkish pipes and coated steel have been weakening lately, making producers seek lower input costs.
Currently, the domestic HRC price in Turkey has settled at $1,050/mt ex-works, down by $50/mt from the official mills’ offers last week. The producers say the demand is quite low and that even the discounted price is not workable. One reason is buyers’ low activity and decreasing prices for pipes and coated steel, another one is the pessimistic mood in the import segment.
The latest offers for HRC from China are standing at $900/mt CFR for Q195 quality, down $30/mt over two weeks. However, some of the buyers are quite confident that the levels of $880-890/mt CFR and even $870/mt CFR are quite workable for suppliers. The material is offered for June shipments.
Other Asia-based sellers are targeting to sell at higher levels to Turkey. Ex-India HRC is available at $950/mt CFR, the same as a week ago, while Taiwan is targeting $930/mt CFR, SteelOrbis has learned.
HRC offers from Russia are not clear for now since the suppliers, who have a lot of trouble organizing shipments, payments and insurances, prefer to deal with each buyer and each possible order individually. At the end of last week, the indications were at around $930/mt CFR. However, today some buyers say $850/mt CFR might be achievable. Moreover, some of the sellers commented that such a level is “not that scary” for them. In the meantime, some of the pipe-makers reported the targeted import prices might be at $800/mt CFR and even below.
