HRC buyers in Turkey are paying scarce attention to ex-China HRC offers, which have remained well over $500/mt CFR and are unworkable especially considering the long lead time. Instead, there has been interest in nearby origins such as Egypt and Russia.
The latest ex-China Q195 3mm and up HRC have been priced at $515-520/mt CFR for September shipments, while earlier this week the levels of $503-510/mt CFR had also been available. There are no takers due to the long lead time and the unworkable price, even in view of the inward processing regime. Rare bids have been reported at $490/mt CFR but for 120-day payment, which has not been accepted by the suppliers, SteelOrbis has learned.
Instead, there has been demand for ex-Russia material. The sanctioned mill has traded 20,000-25,000 mt of HRC at around $470/mt CFR, versus $475-480/mt CFR in the initial offers. In addition, according to sources, a non-sanctioned producer from Russia has sold 15,000-20,000 mt of HRC at $510-515/mt CFR or maybe slightly lower than that.
Offers from Egypt, which is also a duty-free origin in Turkey, have been set at $555/mt CFR from the past week, with deals for around 10,000 mt closed at the same level.
Local HRC in Turkey is mainly at $555-565/mt ex-works for September deliveries, relatively stable over the past week, while $5-10/mt discounts are considered possible for serious buyers. Export HRC offers from Turkey are at $530-550/mt FOB officially and up to $560/mt FOB from some mills, traders report.
