The new week has started in Turkey with a price increase in the HRC market, which, however, has been triggered by a significant rebound in ex-China prices rather than by a positive demand situation. Still, Turkey is mainly offering for September deliveries, which means the mills are currently not under much pressure to sell, at least temporarily.
Ex-China VAT offers for September shipments of 3 mm and up HRC have increased from $475-483/mt CFR last week, to $495-503/mt CFR currently, triggered by higher futures in China resulting from the resumption of talk about production cuts. Still, buyers believe $490/mt CFR should also be possible, but even the discounted level is of no interest in Turkey. Aside from China, the import HRC offers from Egypt for September shipments are evaluated at $540-545/mt CFR, although the supplier is taking its time to announce firm offers, SteelOrbis understands.
The domestic HRC indications in Turkey have shifted up by $5/mt to $540-550/mt ex-works base, for September deliveries. As for exports, the prices have been reported at $530-540/mt FOB officially, while $520-525/mt FOB is considered possible. “I don’t feel, however, that today Turks will be evaluating anything too close to $500/mt FOB. There is no pressure now,” a market source said.
