Turkish hot rolled coil (HRC) producers have started the week with firm offers at around $700/mt ex-works levels, while last week these levels were only voiced by a few producers. The key reason is the actively discussed 50 percent increase in energy tariffs announced by the government on September 1. Turkey’s firmer position in its HRC pricing has triggered an upturn in the import segment. On one side, some buyers have started inquiring more actively, fearing local HRC prices would surge or the mills would cut production if their sales were not marginal. On another side, with the local price increases, the Turkish market has become more interesting for international suppliers and so the number of import HRC offers has risen.
Domestic HRC offers for October production are mainly standing at $700-710/mt ex-works today, up from $640-660/mt ex-works levels seen in the middle of last week. Still, some sellers might consider selling at $680-690/mt ex-works, customers believe. Similar price levels are also indicated to export destinations by some Turkish mills, but no information regarding the workable levels have been reported. “In order to see a true level, the market in Europe has to shape up and form offers have to be seen from Asia,” a trader told SteelOrbis. Locally, buyers are also skeptical regarding whether the new levels will be widely accepted, taking into account that mills increased offers by a larger amount compared to the actual energy-related cost increase estimations of $20-30/mt.
In the meantime, Turkey has been showing more interest in HRC import offers since buyers would most probably like to balance their purchases and secure some lots before prices rise even further. According to sources, bids for sanctioned ex-Russia HRC increased to around $590/mt CFR, while the potential offers are estimated at $610/mt CFR. A non-sanctioned Russian mill has not yet given an offer to Turkey, but buyers evaluate it at $650/mt CFR and assume deals could be closed at $620-630/mt CFR.
Aside from Russia, the HRC offers for SAE1006 quality from China have been reported at $650-660/mt CFR, while ex-India price has been heard at $620-630/mt CFR.