The new week in the Turkish hot rolled coil (HRC) market has started with slight price adjustments, particularly in the import segment, while domestic and export offers in Turkey have remained relatively stable despite demand being rather modest.
China’s offers for Q195 HRC of 3 mm and higher for 45,000-50,000 mt are now settled at $495-505/mt CFR, versus $505-510/mt CFR at the end of last week. Still, no fresh deals have been reported as buyers’ price ideas are closer to $480-485/mt CFR still. The cargoes are available for April shipments which means June arrival, and so customers are quite hesitant. “Sure, risky decisions have to be taken from time to time but, with what is going on in the world and the steel market we have to live day by day now,” a Turkish trader told SteelOrbis.
Instead, some lots have been booked for a shorter lead time from Egypt at $545/mt CFR for around 25,000 mt in total. The volumes are to be shipped in April-May, sources say. In addition, according to some Turkish customers, ex-Russia indicative offers from a non-sanctioned supplier have been voiced at around $515/mt CFR, slightly above the latest reported sales.
Turkey’s export prices are hovering at around $545-560/mt FOB depending on the supplier and the destination. These levels are somewhat too much on the high side to gain the attention of large buyers in the EU, where the workable levels are considered to be closer to $575-580/mt FOB duty paid. A deal to Antwerp has been reported at $540-545/mt FOB for a medium-sized lot. In the meantime, some interest has been seen in the US. Turkish mills have been trying to take advantage of a rapid price increase in the US domestic flats market, and, in fact, according to market information, one of them has succeeded in selling up to 10,000 mt of HRC at $550-555/mt FOB. In the domestic market, as of March 3, Turkish HRC prices stand at $550-565/mt ex-works base, slightly up on the higher end over the past week.