HRC prices in Turkey’s local market have seen yet another upward movement, with another couple of mills joining the uptrend. However, domestic suppliers are citing stable and high scrap prices, coupled with decent HRC sales to Europe concluded over the past several weeks, as the reasons for their price hikes, rather than support from domestic demand. Locally, Turkey’s HRC mills are gradually starting to offer for May deliveries, while the current week is rather silent in terms of business anyway due to the beginning of Ramadan and China being absent due to its holiday.
Currently, the highest price for local HRC stands at $590-600/mt ex-works in Turkey, with some mills offering at $580-585/mt ex-works and refusing to provide discounts. Still, one of the producers, according to buyers, is offering at $570-575/mt ex-works for April deliveries. “The higher prices are not workable since they don’t leave any room for margins. How can we buy coils at $590-600/mt ex-works if sheets are being sold at the same level now?” a trading source told SteelOrbis.
As regards exports, HRC prices from Turkey are at $565-580/mt FOB for May shipment and, in fact, the mills have already been selling for the next quota period with over 50,000 mt traded, SteelOrbis has learned. The upward trend in the local EU HRC market as well as ongoing demand have been supporting ex-Turkey prices.
Import availability is currently low with Russia offering at $475-480/mt CFR for sanctioned material and around $510-515/mt CFR for non-sanctioned material. Chinese suppliers had left for their holiday with their latest HRC offers voiced at $500-505/mt CFR and, according to buyers’ expectations, they may return with a price increase in middle of next week.
