The price downtrend and negative sentiment persist in Turkey’s hot rolled coil (HRC) market. The buyers are mainly not eager to make new purchases either due to already sufficient stocks or they are counting on even lower prices in the near future. As a result, low business activity and at the same time aggressive import HRC offers from Asia have pushed down domestic HRC offers in Turkey.
According to sources, a majority of local offers for HRC in Turkey are at $820-840/mt ex-works base, down $10/mt over the past week. However, it is widely believed that $810/mt ex-works is also on the table for decent volumes. “They [mills] have been resisting going below $850/mt for weeks and it worked because it was too early for June and July. Now we are closer, the demand is not there and the producers are still offering for June and July,” a trader told SteelOrbis. As regards exports, according to some sources, $800-810/mt ex-works levels are considered achievable from Turkey, but they are not yet workable according to EU buyers.
In the import segment, China remains quite aggressive and its offers have dropped by at least another $15/mt. Q195 HRC for May shipments is available at $658-665/mt CFR, while SAE1006 grade is at $685-705/mt CFR, sources report. In addition, according to market information, South Korea has also dropped its offers to around $730-740/mt CFR Turkey and the same levels are reported to be available for ex-India HRC. Russian mills seem to be not offering actively for May shipments, but are evaluating their possible allocations.
