Hot rolled coil (HRC) producers in Turkey have been forced to provide discounts for their local market, following weeks of resistance. One reason in the increased pressure from buyers, while another is the significant decrease in import offers, specifically from the CIS. In addition, export demand from the EU, although still there, is expected to decline during the holiday season.
While at the end of June Turkish mills have been mainly asking for $1,100-1,120/mt ex-works depending on the buyer, the month of July began with some slight decrease to $1,090/mt ex-works. However, by the end of the current week a deal for 15,000 mt has been reported at $1,075/mt ex-works, followed by a decline in the prices mills may be ready to sell at to $1,060-1,090/mt ex-works as a general range. As regards exports, a total of 45,000-50,000 mt have been sold to Europe at $1,080-1,100/mt FOB base, SteelOrbis has learned.
In the import segment, offers from the CIS have decreased rather significantly. At the end of last week, Ukraine’s Metinvest has sold around 40,000 mt of HRC to Turkey at $975/mt CFR at the lowest for small coils and at $1,005/mt CFR at the highest for big coils. Towards the end of the current week, ex-Ukraine offers have been reported at $960-975/mt CFR Turkey with potential to decline. Russia’s MMK in the meantime is in the market with $960/mt CFR in official offers, SteelOrbis has learned. Early this week, the supplier’s target price was $1,000/mt CFR. Another Russia based seller, according to the local sources, sold some volumes earlier at $990-1,000/mt CFR.
Offers from India are also present in the market, but they vary in a rather wide range depending on the seller. Two mills are at $1,000-1,020/mt CFR, most probably not being interested in selling these days. Another one is at $980/mt CFR officially, while traders have been reportedly offering material at $960-970/mt CFR, in line with the ex-Ukraine offers.