Turkish hot rolled coil (HRC) producers continue to avoid sharp declines in their prices for both the local and export markets, most probably waiting for the end of the month when business conditions gain some clarity. In particular, local re-rollers are expected to decide on their purchases for the next round and the EU may begin imports for the fourth quarter quota. In the meantime, import offers for HRC have failed to recover - despite the upturn in the official ex-India offers, the previously achieved prices are still considered to constitute a workable level.
In such a situation, Ukraine’s Metivest has decreased its offers for Turkey by $30/mt over the past week to $1,020-1,030/mt CFR for August shipments. No deals have been closed this week according to sources, and some of them doubt that Turkey will pay these levels at the moment. Last week, India closed deals to Turkey at $1,020/mt CFR and, although offers have climbed to $1,050-1,060/mt CFR and above, the previous level is still considered achievable by some customers. “If you can buy the big coil at $1,020/mt CFR, why would you buy the small one for the same price?” a source told SteelOrbis.
Domestic HRC prices in Turkey are still at $1,150-1,180/mt ex-works and, although they are $130/mt above import prices, the mills are not in a rush to provide discounts. “They are in October production now and it is too early for anyone in the local market to buy that anyway. Mills are waiting for demand to move including Europe and, in addition, China might rebound after the expected rebate and export tax adjustments are announced,” a trader said. As for exports, one mill from Turkey is ready to deal at $1,150/mt FOB, while another one is still voicing $1,200/mt FOB, most probably lacking interest in active sales at the moment.