Some Turkish buyers have decided to restock with ex-China HRC due to the lack of other import options and the expectations for a relative stabilization of prices. Although HRC prices in Turkey itself are under pressure from the negative mood in the scrap segment and insufficient demand, there is confidence that Chinese prices will not move down drastically due to still high costs and the rebound in futures prices in China seen this week. As a result, Turkish buyers have concluded several deals since late last week.
At least two Turkish re-rollers have booked 20,000-25,000 mt each of ex-China Q195 HRC for December shipments. One customer, according to sources, has paid around $575/mt CFR, but for minimum 120-day deferred payment, and the cost for that is estimated at around $20/mt, SteelOrbis understands. In addition, another supplier has paid slightly below $560/mt CFR base. As a result, the latest workable price level for ex-China HRC in Turkey stands at $555-560/mt CFR, while new offers are at $570-575/mt CFR. In addition, one of the pipe-makers, according to sources, has booked 20,000 mt of HRC with the breakdown including thin gauge material. The price has not been fully confirmed by the time of publication, but most of the sources agree it is above $610/mt CFR.
In the Turkish domestic market, more and more sources have been reporting a solid offer level at $630/mt ex-works and there is an expectation that $620-625/mt ex-works bids may be accepted for large lots. Some suppliers are still voicing $650/mt ex-works officially, but the level is not considered workable.