Turkey’s hot rolled coil (HRC) buyers have decided to restock in the rising market and have chosen material available at the lowest prices and for the shortest lead times. In the meantime, given the rising scrap prices which are the key factor behind the general market uptrend, Turkish buyers have been in the market to book import slab.
While domestic HRC offers have increased by $5/mt over the past week to $655-675/mt ex-works base for January deliveries, there has been some business movement in the import segment. According to sources, one of the Russian suppliers traded 30,000 mt of HRC at up to $580/mt CFR Turkey, while another sold 50,000-60,000 mt at $620-630/mt CFR, including the most recent negotiations. The prices differ depending on the rate of sanctions applied to the Russian producers. The ex-Russia HRC volumes are to be produced in January and to be shipped in the first half of February. In the meantime, the ex-Asia offers, namely, from India and China, have been reported at $620-630/mt CFR for January-February shipments. “The lead time from Asia is 45 days, while from Russia’s Black Sea ports it sails during 7-13 days,” a trader commented.
Along with the HRC purchases, Turkey has been in the market to buy slabs. According to sources, a 50,000 mt cargo has recently been purchased from Vietnam at $533-535/mt CFR. In the meantime, ex-Indonesia slab has been on offer at $550-555/mt CFR, while Saudi Arabia has been trying to sell at $560/mt CFR for January production. Russia has remained the cheapest option for those who are not afraid of sanctions-related risks. The market sources state the offer levels are at around $460-480/mt CFR for January production, while the latest deal was closed at the end of November at $440/mt CFR.