Trade in Turkey’s hot rolled coil (HRC) market has failed to improve much over the past week amid slow end-user demand. Some re-rolling companies, however, have been in the market given the necessity to restock, but there have been no reports of actual deals in the import segment yet.
Turkey’s domestic HRC prices have remained mainly at $590-600/mt ex-works levels for August deliveries, while levels $5/mt lower are also considered possible. As for exports, the realistic offer levels are still at $580-600/mt FOB for August shipments, with bids still mainly being at $560-580/mt CFR.
Import offers from China have remained mostly in the range of $550-560/mt CFR with some firm offers reported at $553/mt CFR and $558/mt CFR from certain large suppliers. Some Turkish re-rollers are reported to be in negotiations for 25,000-30,000 mt with an extended payment option. However, no detailed information regarding a deal has been reported yet.
Some market players expect Indonesian’s Dexin to start offering HRC to Turkey from its new capacity of 2 million mt. It is reported that the price for Europe is at around $600/mt FOB, which is not workable for Turkey given the low offers from China.
