Hot rolled coil (HRC) producers in Turkey are finishing the week with higher domestic and export price indications voiced. Although the general market situation is still shaky and local buyers are particularly cautious given ongoing economic and financial troubles, some transactions have been concluded. As a result, having sold some average volumes to the domestic market and also with support from the relatively positive situation in China, Turkish mills have decided to take their chances in increasing their offer levels.
Currently, the domestic HRC price in Turkey for August deliveries is at $690-700/mt ex-works, up $30/mt since early this month. According to sources, small and medium-sized deals have been closed mainly in the range of $650-670/mt ex-works base since late last week, while some minimal volumes have been sold at $10-15/mt higher. The HRC export indications have also increased to $640/mt FOB minimum, versus $620/mt FOB seen in last week, but the chances of selling to Europe specifically are minimal.
In the import segment, HRC offers from China, though fluctuating, continue to be supportive for Turkish mills. Over the past week, prices climbed from $560-575/mt CFR to $580-595/mt CFR in the middle of the current week. A 30,000 mt deal has been rumored in the market as having been closed at $580/mt CFR, although this was not confirmed by the time of publication and most players believe the price is too high to be workable. By the end of the week, Chinese offers have settled at $590-595/mt CFR for Q195 quality. “I don’t think they can sell at these levels. Prices should be rolled back next week or later. I don’t think the uptrend is built on valid grounds,” a supplier told SteelOrbis.
In addition to China, India is offering at $630-635/mt CFR, which is not workable. Last week, according to sources, Japan sold a relatively large lot at around $610/mt CFR to a re-reroller in Turkey. The latest price from Taiwan stood at $580/mt CFR, but the supplier decided to pull back.