While HRC prices from Turkish mills have remained stable over the past week in the domestic market and are somewhat softer on the export side, import offers have decreased, particularly from China. No new deals have been reported yet, while Turkish customers seem to be in the mood to push for even lower levels, given the reappearance in the market of non-VAT offers from China.
Import offers from China have settled at $488/mt CFR for Q195 3mm and up HRC for November shipment, coming from one of the key traders. Earlier this week the offer stood at $500/mt CFR. However, according to sources, some sellers have restarted offering non-VAT material at $481-483/mt CFR, marking the lower end of the ex-China price range. However, the workable levels for Chinese material are considered to not exceed $470-475/mt CFR for now.
Russian suppliers are also in the market with a new round of offers for December production HRC. The non-sanctioned mill is starting negotiations at $505/mt CFR, but Turkish buyers are seeking prices closer to $490/mt CFR and slightly lower. The sanctioned Russian mill has offered at around $480-485/mt CFR but, according to sources, has not received bids above $470/mt CFR. Instead, the mill is focusing on the MENA region with offers at $485/mt CFR, which is equal to around $425-435/mt FOB.
Turkey’s domestic HRC prices have been kept unchanged so far compared to last week at $535-550/mt ex-works levels, depending on the mill and for December deliveries. Buyers are quite cautious in their purchases, considering the rather weak ex-Turkey export activity and the end of the uptrend in the import scrap segment. HRC export offers from Turkey have been reported mainly at $535-545/mt FOB. According to sources, small lots have been traded to Greece at the upper end of the range, while large customers in the EU consider levels of $525-528/mt FOB from Turkey to be achievable. “Everyone is cautious due to the EU trade measures, CBAM and related risks. But I think there is still a chance to sell well for deliveries and customs clearance before January 1,” a source told SteelOrbis.