Import hot rolled coil (HRC) prices have slid in Turkey, following the latest drop in futures prices in China, though the market was expecting a deeper dip. While domestic HRC prices in Turkey remain far above $600/mt ex-works, ex-China offers have lost only $5/mt for now. Moreover, the current levels are considered quite attractive by Turkish buyers, who have not restocked in a while.
The latest offers for Q195 grade HRC of 3 mm and higher from China have been reported at $543-545/mt CFR, versus $548-550/mt CFR a day earlier. According to sources, one re-roller lately booked 45,000 mt of HRC at $540-543/mt CFR. However, some customers may now be expecting slightly lower levels. “To be honest, these levels are workable in Turkey and quite fit the costs, but, since coated steel exports are quite low, re-rollers might want to wait a bit more,” a trading source told SteelOrbis. Domestic HRC offers in Turkey are at $625-640/mt ex-works for December deliveries, relatively stable over the past week. Export offers are at $600-610/mt FOB, with some $15/mt discounts possible for serious buyers.
Other HRC origins are also present in the import segment in Turkey. Egypt has been offering at $620/mt CFR following a sale at $610/mt CFR closed last week. In addition, Ukraine has resumed offering HRC to Turkey and opened at $590-595/mt CFR for January shipments, which is considered to be a realistic level. According to sources, the supplier is aiming to sell under the recently announced but not yet settled Free Trade Agreement between Ukraine and Turkey, which will also affect the steel trade between the sides. In particular, for HRC imports from Ukraine to Turkey there will be zero tax for volumes up to 120,000 mt per year, while generally for most origins, excepting a few, Turkey has 13 percent and 15 percent import taxes.
Russian mills have been also active in HRC exports in past weeks, trying to take advantage of the price increase in China. A sanctioned mill has been offering HRC to Turkey at $530-540/mt CFR and to the MENA region at $520-530/mt CFR, while a non-sanctioned mill, according to sources, has been negotiating at $560-575/mt CFR Turkey. However, earlier the supplier, according to sources, had traded at least 100,000 mt of HRC to Turkey at around $500-510/mt CFR. The information has not been confirmed by the time of publication.
