Turkish hot rolled coil (HRC) producers have started to increase their official offers, following some considerable sales in the local market and moderate export activity. The uptrend was expected and, moreover, it is supported by strong scrap and import slab prices.
Having traded sufficient volumes in the local market at up to $430/mt ex-works, Turkish mills have started voicing higher offers by the end of this week. The producers have started to quote $450-460/mt ex-works, while some buyers consider $440-445/mt ex-works levels to be acceptable for large volumes and at firm bids. In the domestic market, HRC is available for September deliveries.
In the export segment, Turkey’s indicative offers have increased by around $10/mt over the past week to $440-445/mt FOB for end of September-October shipments. Some deals may be closed in the North African region, while sales to the EU are questionable given that the date of the AD duty announcement is drawing closer, and so purchases may be considered by buyers to be risky. Some sources foresee negotiations with China where the market situation looks promising. However, the increased freights may make Turkey’s price indications to Asia uncompetitive, SteelOrbis estimates.