HRC producers in Turkey have not managed to avoid another round of discounts, being under pressure from low import scrap prices, while buying activity for flats has remained subdued. The domestic customers have been holding back large orders, trying to evaluate at which levels the market will bottom out. The last week’s clarification of the CSQs in the EU has also added to the negative mood in Turkey’s HRC market. Although there has been certain interest in purchases for Q4, European buyers have still managed to get discounts. In the meantime, pressure from imports in Turkey’s HRC market has been minimal, taking into account the limited amount of origins on offer.
In the domestic HRC market, Turkish mills have decreased offers for August-September deliveries by $5/mt to $600-610/mt ex-works. Moreover, some players have been reporting some talks at as low as $590-595/mt ex-works, most probably for decent lots. Export offers are at $590-600/mt FOB, with some $610/mt FOB levels also voiced officially, but, according to sources, some deals have been closed recently to Europe at $580-585/mt FOB. The latest CFR prices for Turkish HRC in Europe have stood at €600-620/mt, according to European sources.
Import offers for HRC from China have been relatively stable since last week. The cargoes from second-tier mills are available for August shipments and at $535-538/mt CFR. Although demand is on the low side, the traders expect that Turkey would pay around $520-525/mt CFR for this material. The offers from first-tier mills have been standing at $545-548/mt CFR.
