This week, domestic hot rolled coil (HRC) prices in Turkey have stabilized compared to the middle of the month, with most sellers aiming to trade at $1,050/mt ex-works, while buyers still consider $1,020-1,030/mt ex-works levels to be available in the market. However, sentiment among mills is still bullish, and, according to sources, some of them plan to set their prices at $1,080-1,100/mt ex-works next week. August HRC allocation is still on the table, though the producers report that volumes are limited. In addition, prices in Europe have recently increased by another €30/mt, having reached €1,000/mt ex-works for HRC. The rebound in the import scrap segment, although being a cautious one for the time being, has also supported flat steel producers in Turkey. Export offers from Turkey have increased from $990-1,020/mt FOB seen last week to a minimum of $1,020-1,040/mt FOB as of today and $1,030-1,035/mt FOB levels have been already reportedly fixed in deals. “The situation in the market, though it may seem scary, is still positive for sellers. For now, it is hard to see a turning point,” a source told SteelOrbis.
Turkey’s import HRC market has been full of rumors regarding sales from Asia at below $1,000/mt CFR, which has been disturbing trade for regular suppliers. According to sources, around 20,000 mt of ex-India HRC were sold last week to Turkey at $985/mt CFR. However, some local players have expressed doubts as to whether these levels are possible, since India offered $1,020/mt CFR to Turkey and sold at $1,050/mt CFR to Europe last week. Similar doubts have been heard regarding bookings from Indonesia at $970-980/mt CFR, taking into account that offers stood at $1,000/mt CFR Turkey last week.
In the meantime, the number of offers from the CIS has been scarce this week mainly because Russian mills are temporarily out of the market. Severstal has started to offer $1,120/mt FOB, using the advantage of high prices and demand from the EU and this level is certainly not workable in Turkey. MMK and NLMK are taking their time to give firm offers, while evaluating their allocations for June production. Meanwhile, Ukraine’s Metinvest has been offering $1,000/mt CFR for small coils with bids reported at around $990/mt CFR. As a result, small lots have been sold this week, SteelOrbis has learned.