Hot rolled coil (HRC) sellers to Turkey, both local and foreign, remain bullish and have increased their prices once again. Higher demand and limited HRC allocation are among the key supportive factors. Some sources fear that prices have risen too fast and that the downturn could be painful enough. However, for now the market looks positive and prices are foreseen to at least remain strong.
Local HRC prices in Turkey have increased by another $5-10/mt to $550-560/mt ex-works depending on the supplier. Some sources report $10/mt higher levels have been voiced in the market, but these are considered too high for the moment. The producers are in the market to sell for February production. Similar levels are being offered for exports, but the latest deals were closed at $530-545/mt FOB depending on the seller, order size and the destination.
In the import segment, firm HRC offers have been voiced by MMK and Metinvest. MMK has set its January production price at $535/mt CFR, up $20/mt over the past week. Ukraine’s producer has increased the offers over the same period by around $10/mt to $535/mt CFR for small coils and $545/mt CFR for big coils. No competitive offers have been heard from Asian suppliers, which makes the supply situation in the Turkish market somewhat tight, SteelOrbis understands.
