While Turkish buyers have started the year with quite slow business activity in terms of HRC purchases, which has led to slightly weaker price positions of domestic mills, foreign suppliers have been mainly trying to increase their offers for Turkey, starting the new round of sales for March shipments. Some sellers are still out of the market and are expected to voice their fresh offers next week.
Import HRC offers from China for March shipments have increased by around $10/mt since earlier this week and from the end-of-December levels to $510-512/mt CFR for Q195 material. According to some sources, the pipe-making breakdown is available at $515-520/mt CFR from some traders. “There are still no non-VAT offers and the currency rate might have pushed up the offers on exports a little, but it should be temporary. These levels are not workable in Turkey,” a trader told SteelOrbis. Along with China, there have been HRC offers from Taiwan at around $505-510/mt CFR, which is considered by some to be quite a competitive level.
One of the Russian mills, a non-sanctioned one, has returned to the market with offers for HRC for March shipments at $510-515/mt CFR, up from the deals closed in the previous round at $485-495/mt CFR for considerable volumes. The sanctioned Russian HRC producers are expected to return with firm offers next week and the levels of $475-485/mt CFR are anticipated, for February-March shipments depending on the mill, SteelOrbis understands.
The indicative price level from Malaysia is at $550-555/mt CFR for March, but the supplier is said to be not offering firmly, just voicing its idea. An Egyptian mill, according to sources, is currently not offering and its expected levels are at $565-570/mt CFR, buyers comment.
In the local market for HRC in Turkey, business activity has been somewhat slow, according to the mills, and the realistic offer levels have settled mostly at $555-560/mt ex-works base for mainly March deliveries, while slightly higher indications also being voiced. Export offers are mainly at $540-545/mt FOB for March shipments, down $5/mt on the upper end since the end of last month.
