As the year nears to an end, the HRC buyers in Turkey seem unwilling to enter active negotiations for both local and import purchases, waiting to see a clearer market situation in the first half of January. While some of the import HRC offers have been inching up as the suppliers are eager to test higher levels for early March shipments, the domestic HRC producers in Turkey have maintained the price levels despite the slow local trade. One reason is the stability of the import scrap prices at high levels, another one is that providing discounts nowadays will not create additional trade but might weaken negotiation positions of the suppliers for the next round.
The new week has started with a few US dollars increase in the official offers from China – the Q195 material is available at $500-505/mt CFR for February shipments, while SAE1006 HRC is at $505-510/mt CFR, sources report. Some of the traders are offering pipe-making breakdowns at $520-525/mt CFR, relatively stable over the week.
In addition to China, two ex-Russia sanctioned mills are offering HRC at $470-475/mt CFR for January shipment and $475-480/mt CFR for end of February and early March shipment, respectively. Previously, the indications for this material stood at $470/mt CFR. A non-sanctioned Russian mill had lastly indicated $495/mt CFR for the last deals for February shipments.
An Egyptian mill prefers to stay away from the market just yet and is planning to return with offers for March shipments sometime next week. The supplier is expected to test the market at $565/mt CFR minimum, SteelOrbis understands. HRC from Malaysia, another duty-free origin in Turkish market, is on offer for March shipment and at around $550/mt CFR, sources report, up from $545-550/mt CFR earlier.
The domestic HRC prices in Turkey have remained unchanged at $555-565/mt ex-works in the official offers although $5/mt lower levels are considered reachable. Most mills are voicing indications for March deliveries, but some limited volumes might be still allocated for February, SteelOrbis understands.
In the export segment, the official HRC offers from Turkish mills are at $545-555/mt FOB for end of February and early March shipments. However, some sources report that $5-10/mt lower levels might be available for certain orders. Still, while the EU is out for holidays, most of the players are waiting for a clearer market situation to be seen closer to mid-January.
