The import trade has remained rather active in the hot rolled coil (HRC) market in Turkey and the material for short lead times remains in the focus of buyers. In fact, as expected, Russia has managed to sell out its April production HRC to several customers, while Chinese suppliers have also traded large HRC lots for April shipment. In the meantime, the domestic HRC pricing seems relatively stable from the end of last week, while a number of market players are on hold for business, expecting a further decision on import duties for flats.
According to sources, ex-China HRC, which was and remains the lowest priced in Turkey, was traded for a large lot at $710/mt CFR for SAE 1006. Later, an additional 30,000 mt of HRC of the same grade was sold at $722/mt CFR, for April-May shipments. The latest offers for SAE1006 Chinese material to Turkey have been set at $730-735/mt CFR, SteelOrbis has learned.
In addition, one of the Russian mills has traded most of its April production allocation to Turkey at $800-815/mt CFR in the latest deals, while the earlier concluded contracts were reported at around $785-790/mt CFR. Another Russian mill is not yet in the market with HRC for the same production term, as its production shifts are yet to be evaluated.
In the local market in Turkey, the offers are at $850-860/mt ex-works for June deliveries from one mill and at up to $870/mt ex-works from another. However, most buyers believe the lower end of the range is workable and even count on some additional discounts.
It is worth mentioning that a number of Turkey’s flat steel market participants are expecting the results of today’s meeting between the government and the mills. The outcome may clarify the rebar price situation for the Iskenderun region’s rebuilding projects and the related import taxes for billets or the relaxation of the inward processing regime. However, at the same time, there is an expectation that the increase in import flats duties, which was delayed to April 1, may be once again postponed in order to support local pipe-makers and re-rollers.
