While Turkish hot rolled coil (HRC) producers have been aiming at high domestic prices, more HRC of foreign origins is being offered in the country’s import segment. The levels are not yet considered workable, but, if some discounts are granted, they may be accepted, especially if Turkish mills continue to insist on their current levels or even increase them.
Domestic HRC prices in Turkey for August-September deliveries have been ranging at $450-460/mt ex-works, as SteelOrbis reported, having increased by around $10/mt since mid-June. Some buyers and traders, however, estimate the workable levels at not higher than $440/mt ex-works and report that some mills may be ready to deal at such levels shortly, especially if export sales do not improve. Turkey’s export offers are at $440-455/mt FOB for September shipments, though are largely not workable either in Europe or in Asia.
In the meantime, some fresh offers have been reported in the import HRC segment of Turkey. According to sources, European suppliers are offering at around $440/mt CFR for August-September shipments and buyers consider discounts possible. In addition, India has been testing the Turkish market with $440-445/mt CFR offers for the same shipment term, and similar levels are being offered from India to the south of the EU, SteelOrbis has learned. “These [levels] are not yet workable, but if there are discounts to $425-430/mt CFR while local offers are at $460/mt ex-works, there might be a chance,” a trader told SteelOrbis.
Most CIS-based HRC sellers have been out of the market, getting ready to offer for August production. The latest ex-Ukraine offers have been reported at $425/mt and $435/mt for small and big coils respectively, both on CFR basis. Sources report $420/mt CFR bids for medium lots of small coils have been rejected by sellers.