Turkish HRC producers have reduced their prices slightly from previous targets in the domestic market, returning to somewhat more realistic levels, seeing that many buyers were quite cautious. In addition, activity for import scrap has been low this week, which has had a slight cooling effect on trade in the steel markets. However, HRC mills are not expected to provide further discounts, at least not sizeable ones, since they are not under pressure to conclude urgent sales for June and since the EU market is supportive in terms of the price trend. Moreover, the import segment is not aggressive these days, with only a few origins on offer.
Local HRC prices in Turkey have weakened by around $5/mt over the past week to $625-640/mt ex-works, mainly as the earlier targeted levels did not meet much acceptance among buyers. Export offers, however, have settled at $620-630/mt FOB, based on the strong European market and expected demand for Turkish products.
Import offers from China have been reported at $535-545/mt CFR for early June shipments, while earlier $545-550/mt CFR levels were offered by first-tier mills. Suppliers report that some discounts may be possible, but many are still cautious regarding buying from Asia. The latest ex-Malaysia HRC prices stood at up to $615/mt CFR and, according to sources, some lots were booked at a slight discount. The Egyptian mill is not in the market with offers to Turkey, preferring to concentrate on domestic sales as well as negotiations with European customers.
Ex-Russia offers for non-sanctioned HRC have been announced at $580/mt CFR for June shipment, marking at least a $20-25/mt price increase from the latest sales in the previous round. The sanctioned HRC offers from Russia for May-June shipments have been reported at $510-520/mt CFR.
