Local Turkish HRC prices increase

Monday, 22 July 2019 16:07:24 (GMT+3)   |   Istanbul
       

Over the past two weeks, demand in the local Turkish hot rolled coil (HRC) market has remained at low levels. Besides the negative impact of the slack summer season on trading activity, Turkish buyers have continued to make bookings only to meet their immediate needs, also due to their expectation that the tensions between the US and Turkey, resulting from Turkey’s purchase of S400 missiles from Russia, may impact the strength of the Turkish lira against the US dollar in the coming period. However, Turkish HRC producers have increased their domestic prices by $25/mt on the lower end and by $20/mt on the upper end week on week to $525-540/mt ex-works since import HRC offer prices for Turkey have increased. According to market sources, demand for domestic HRC in Turkey is unlikely to improve in the coming period due to the sluggish summer season.

Meanwhile, according to a notification in the Turkish Official Gazette, the import duty on HRC for rolling mills in Turkey, which was increased to six percent as of January 1, 2019, will remain in force, while for domestic welded pipe producers HRC products with Customs Statistics Position Numbers of 7208.38.00.90.19 and 7208.39.00.90.19 will be subject to a six percent instead of a nine percent duty. Since most HRC imports in Turkey are purchased within the scope of the country’s inward processing regime, the change in import duty is not expected to result in a significant rise in HRC imports in Turkey.               

As for the spot market, demand has also remained weak, while traders’ prices have increased by $10/mt in line with the rises in producers’ prices during the past two weeks to the following levels: 

 Product

Price ($/mt)

Eregli

Gebze

 2-12 mm HRC

560-570

570-580

 1.5 mm HRS

600-610

605-635

 2-12 mm HRC (for large tonnages)

 

550-560

 3-12 mm HR P&O

590-600

630-640

 


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