MMK, one of the key Russia’s flat steel exporters, has decided to increase its offer prices for June production for the Turkish market, most probably supported by firmer scrap price levels fixed in the latest deals to Turkey. Market players, however, doubt the higher flats prices will be accepted by Turkey nowadays due to competitive offers from domestic mills and other foreign suppliers.
According to sources, MMK’s official hot rolled coil (HRC) offers to Turkey have increased by $10/mt since earlier this week to $375-380/mt CFR. Previously, MMK had been selling small lots within $365-370/mt CFR, as SteelOrbis reported earlier. Market players, however, have doubts whether the increase will be achieved since domestic demand for flats in Turkey remains subdued as the operations of consuming industries have been limited. In addition, other CIS-based sellers’ prices remain at $365-370/mt CFR levels for now, while locally the workable price level in Turkey is at $380-395/mt ex-works, SteelOrbis has learned.
In the cold rolled coil segment, MMK has set its new official offer at a minimum of $440/mt CFR, up by around $15/mt since last week. Turkey’s domestic prices have slipped by $10/mt to $490-510/mt ex-works depending on the sellers. Sources say there is almost no demand above $490/mt ex-works and for cash payments re-rollers may grant additional $10-15/mt discounts. Some suppliers are offering at $500-510/mt ex-works, but for deferred payment, SteelOrbis understands.
