Turkey's local and export HRC prices have remained relatively stable over the past week, while many market players have noted that the demand is not so supportive, especially since most European buyers are now silent due to the start of the holiday season. In this context, strong cost pressure does not allow Turkish mills accept price decreases and, moreover, any discounts would be unlikely to create considerable additional demand, sources told SteelOrbis. On the other hand, following the heavy import restocking seen over the past two weeks, local flats demand in Turkey is not enough to support any upward price attempts in the HRC segment.
Currently, local HRC prices in Turkey are mainly at $585-590/mt ex-works, with $580/mt ex-works still possible. The material on offer is mainly for September deliveries. In the export segment, offers are at $570-580/mt FOB for medium and large volumes, for September shipments. Sources have been reporting some negotiations with North African buyers, as well as with buyers in the Balkan region, including non-EU countries. No fresh deals, however, have been reported.
Ex-China HRC offers to Turkey have softened from $535-540/mt to $527-537/mt CFR this week for cargoes to be shipped in September. Based on the latest ex-Vietnam bookings, the potential workable prices for Chinese material are evaluated at around $520/mt CFR, SteelOrbis understands. Indicative fresh offers from Vietnam and Indonesia have been reported at $550-555/mt CFR, which is more or less stable week on week. The latest indications from Malaysia have been discussed in the market at around $570/mt CFR, with a deal for a full cargo, according to sources, closed at a slightly lower level. The previous booking from Malaysia was closed several weeks back at around $585/mt CFR. According to some sources, indications from Egypt have been voiced at $640/mt CFR after a long break, but the price is considered too high under the current market conditions. Russia remains out of the market being fully focused on its domestic market and on CIS-based buyers, as well experiencing logistical issues for maritime operations.
