Sentiments in the Turkish hot rolled coil (HRC) market have been mixed this week. While import offers have strengthened, prices for Turkish origin HRC have been under pressure both in the local market and abroad.
Ex-Ukraine HRC prices for Turkey have increased by $20/mt over the past week to $1,040-1,050/mt CFR depending on the coil weight. One Russia-based mill is aiming to sell at $1,100/mt CFR and above for limited lots, similar to the deal level fixed to Turkey earlier in June. Another Russian mill has closed a sizeable volume to the Iskenderun region at $1,070/mt CFR, again earlier this month. HRC offers from India have been mainly reported at $1,055-1,065/mt CFR from the key suppliers, with no business closed after the previous sales.
Local HRC pricing in Turkey remains unclear with the official offers mainly being at $1,150/mt ex-works, with one seller reportedly quoting $1,130/mt ex-works. Last week, the indicative levels were at $1,150-1,180/mt ex-works but even then they were not workable. Moreover, some customers have been reporting that in negotiations certain producers might decrease the prices to $1,120/mt ex-works. “They might be ready to give these levels in line with their export sales,” a trader told SteelOrbis.
According to sources, some suppliers from Turkey have considered the range of $1,110-1,130/mt FOB as acceptable for sales to Canada (around 15,000 mt) and to some European countries. However, others stated that bids from southern Europe in particular have been at $1,050-1,100/mt FOB. In the meantime, some HRC producers in Turkey continue to offer at $1,140-1,150/mt FOB as the official export levels for October shipments.
