Supported by the uptrend in the import scrap segment, Turkish hot rolled coil producers have been able to avoid giving significant discounts. Moreover, having already booked sizeable tonnages, the producers are aiming to increase their offers, to the local market specifically.
Last week, one of the Turkish HRC mills closed a deal with a pipe-maker for 35,000 mt at $493/mt ex-works base, for April delivery. In addition, according to sources, some of the Turkish re-rollers have purchased each around 10,000 mt at about $500-505/mt ex-works. As a result, some of HRC producers are aiming to sell at not lower than $505-510/mt ex-works, while levels $5/mt lower are also considered possible, SteelOrbis understands.
In the import segment, no fresh deals have been heard. However, the market is somewhat concerned with China being back with offers. HRC from China is available from traders at $495-500/mt CFR. “No one will buy as delivery and especially discharging is a big problem. The vessel will have to stay in port for a detention period and overall this business carries too many risks,” a local pipe-maker said. However, the sources are still worried that decreasing China’s HRC prices may influence the trend in the Turkish market, which is currently in the opposite direction. Aside from China, Ukraine’s Metinvest is offering $495/mt CFR, having sold at least 30,000 last week at $480/mt CFR and slightly above, as SteelOrbis reported earlier.