Hot rolled coil (HRC) producers from Turkey have been refraining from active slab imports lately since the outlook in the flats markets has been negative to unclear depending on the segment. In addition, the increased freight rates have put pressure on FOB price levels from the CIS.
According to sources, ex-CIS slab offers to Turkey are at $940-960/mt CFR, down by around $5-10/mt over the past two weeks. Still, buyers are mainly inactive, since CRC and coated prices have been falling and HRC offers have been under pressure. There has been a rumor of a $930/mt CFR sale, but the information has not been confirmed by the time of publication.
Ex-CIS steel slab prices are estimated at around $920-930/mt FOB, down $15/mt over the past week. Some believe another $10/mt drop will be seen shortly. It is worth mentioning that the increased freight rates have been exerting pressure since today the shipping price to Turkey for regular 20,000-25,000 mt lots is estimated at $23-30/mt depending on the region.
Along with the CIS, Brazil has been gradually returning to the Turkish market with offers, taking into account that suppliers’ quotas to the US are close to being filled. The price for Turkey is at $950/mt CFR, with no deal information disclosed just yet, SteelOrbis has learned.
