Turkey’s domestic consumption remains subdued and this is one of the key reasons for hot rolled coil (HRC) buyers to target discounts. In addition, last week import scrap prices declined, adding to the general downward expectations.
While some Turkish mills have been holding back their offers for the local market and some have been officially voicing levels above $400-405/mt ex-works, the workable price levels in the domestic market in Turkey are currently estimated at $385-395/mt ex-works and slightly below. No deals, however, have been reported, though some negotiations are underway. In the export market, according to sources, some 20,000 mt in total have been traded to Italy since last week at $388-390/mt FOB. Some minor lots have been sold to traders for export at $390/mt FOB on the average, SteelOrbis has learned.
In the import segment, CIS-based mills have been negotiating for June production HRC. According to sources, Russia’s Severstal has offered €345/mt CFR ($375/mt) CFR, while MMK is reportedly ready to deal at $365/mt CFR, $5-10/mt higher than initial offers. Since late last week, the market has been actively discussing a sale from Ukraine to a Turkish pipe-maker at $355/mt CFR. However, one of the sides denies this deal. Others suggest that Metinvest has been selling at around $362-365/mt CFR and maybe slightly above depending on the buyer. Overall, bids from Turkey for import HRC have been mainly at $360/mt CFR and below this week. Import HRC prices from the CIS have decreased by around $10/mt since early last week.
