Turkey’s hot rolled coil (HRC) market continues to see price changes mainly in the import segment, while local mills are trying to maintain offers unchanged, even though demand has been relatively slow. While ex-China HRC prices have moved up by the end of the current week, Turkish steel producers have not changed their offers, though the pressure from weak export sales, especially to Europe, has increased. In this context, Turkish buyers believe that suppliers may provide some discounts in the domestic market but for decent orders.
Having started the week at $480-490/mt CFR, Chinese HRC offers to Turkey first increased to $485-490/mt CFR and by the end of the week have settled at $500-503/mt CFR, following a significant rise in futures prices in China. The offers are given for Q195 grade material of 3 mm and higher and for 40,000-45,000 mt lots for end-of-October and early November shipments. Sources have reported that some pipe-makers have been in negotiations, but no actual deals have been reported. “I guess everyone will wait for China to return after the holidays, but I would believe anything below $490/mt CFR should be workable,” a trading source told SteelOrbis.
In the meantime, Turkish mills are offering HRC mainly within $580-590/mt ex-works base for early November delivery, while $600/mt ex-works indications are considered to be off the table at least for larger tonnages and for longer lead times. Still, $570/mt ex-works/CFR Marmara levels are believed to be achievable from some of the mills. As for exports, suppliers from Turkey have been under pressure from the weak demand and pricing in the EU. The official export offers from Turkey are at $570-585/mt CFR still, but bids are around $30-35/mt lower than that, sources report.
