Pessimistic moods mainly prevail in Turkey’s hot-rolled coil (HRC) market and the workable price levels have rolled back to the previous levels, following the cautious attempts made to increase prices last week. The main reason is the lack of demand in the domestic market and the limited volume of inquiries in the export markets, coupled with the negative sentiment in the import scrap segment. As for imports, basically only Russia is there to sell and the Russian suppliers have had to provide discounts in the current market conditions, though buyers’ interest is still low.
Domestic HRC prices in Turkey are still officially at $640-660/mt ex-works base for September deliveries, while many sources report $620-630/mt ex-works and even slightly lower levels are possible in the case of serious orders. “We have to offer at $650/mt due to the cost, but there is no demand. Buyers’ expectation is $600-610/mt ex-works,” a supplier said.
In the import segment, two Russian mills are reportedly at $560-570/mt CFR in talks with Turkish buyers, down from the general levels of $590-610/mt CFR, seen last week. However, one of the Russia-based mills is still at $550/mt FOB which is calculated at $590/mt CFR. “This simply means they are not interested in selling or negotiating in this market,” a trader assumed. Aside from Russia, HRC offers from India are at $630/mt CFR and this level is not considered workable.
