Turkey-based hot rolled coil (HRC) producers have decided to take a step back from import slab bookings, having procured sizable lots earlier. The key reason is the downturn in scrap and HRC prices in the region, and so slab buyers are aiming to gain a clearer picture of the current situation. Bids are rare and for now are unacceptably low for the supplying side.
CIS-based mills are mainly offering $340/mt CFR for June production slabs. In the second half of April, sizable lots were sold in the range of $340-345/mt CFR, as SteelOrbis reported. Another supplier to the market, British Steel, has been discussing $345/mt CFR for 30,000 mt of slabs for June shipment. However, Turkish mills have been bidding at $320/mt CFR at the highest. “Low HRC price is the problem and also scrap may not have bottomed out yet,” a producer said. No offers ex-Brazil have been reported in Turkey.
Suppliers, however, are not in a rush to accept low bids, being not yet forced to concentrate on Turkey alone. “With such prices in Turkey, it might be better for us to negotiate with China,” a producer mentioned. For now, the workable level for import slabs in China is estimated at $350/mt CFR on average, which corresponds to around $315/mt FOB Black Sea. Turkey, in the meantime, is pushing for around $305/mt FOB or slightly above, taking into account recent freight rates, SteelOrbis understands.