The general market sentiment in the Turkish HRC has weakened during the past week under the influence of weaker demand. Overseas customers had mainly restocked earlier and, in addition, demand in the EU ahead of the Easter holiday has diminished. In the domestic market, buyers are cautious, expecting prices to soften under pressure from slow trade and low scrap prices. As a result, the bullish price ideas voiced last week are not considered workable currently.
This week, domestic HRC prices in Turkey for June deliveries are at $580-595/mt ex-works, while previously levels of $600/mt ex-works and above were voiced. Moreover, some rumors in the market stated the workable levels could be closer to $570-575/mt ex-works, in line with the recent HRC export bookings to the EU. However, at least for now, Turkish mills seem to have time to wait and see.
Import offers from China have remained at $490/mt CFR with levels $3-5/mt lower also considered possible for Q195 HRC of 3 mm and higher, for early June shipments. In the meantime, official offers from Egypt have been at $575/mt CFR officially with small deals reported at $570/mt CFR. However, most market players believe the workable level for this material should be closer to $555-565/mt CFR depending on the volume. Ex-Russia offers have remained vague due to low demand and the indications for the non-sanctioned material have been reported by some buyers at $505/mt CFR.
