Turkey’s hot rolled coil (HRC) market has received support in terms of pricing from the currently positive sentiment in China. As a result, both domestic and import HRC prices have indicated an increase, although most market players consider the situation to be only temporary, given the ongoing slow domestic demand and the financial issues in the country.
In the import segment, China has increased its offers as expected due to the previous rise in futures prices linked to the announced government stimulus package. As of today, June 6, 20,000-30,000 mt HRC lots of 3 mm and higher of Q195 quality are mainly offered at $590/mt CFR, while some market sources report $580-585/mt CFR levels may also be achievable. Last week, the general level of indications from China to Turkey stood at $560-575/mt CFR. No interest has yet been seen in the mentioned Chinese offers, but the positive developments have somewhat improved the sentiment in Turkey’s HRC market.
Currently, domestic HRC indications in Turkey are mainly voiced at $670-680/mt ex-works, while previously the levels of $660/mt and even $650/mt ex-works had been considered workable. Most suppliers claim they are selling for August deliveries, while buyers assume there are still certain volumes available for July. The producers cite the positive situation in China and the general lack of import HRC offers as the main reasons. Indeed, aside from China, only India is in the market with $620/mt CFR indications, which are not considered workable. Russian mills are not in the market with HRC, citing lack of availability due to local demand and mills’ maintenance works as the main reasons.