Hot rolled coil (HRC) producers in Turkey have managed to keep their offers relatively stable over the past week, mainly supported by high production costs. In the meantime, demand has remained limited and particularly on the export side the mood has weakened due to the recent price decline in the EU. In the import segment, it is still not so crowded and most incoming offers, especially from Asia, are not considered workable in Turkey, at least so far.
Domestic HRC offers in Turkey are still at $660-690/mt ex-works base, the same as a week ago. Many buyers are confident that $650/mt ex-works levels will be heard, but mills state this price is lower than their cost-breakeven level. As for exports, most traders report offers are at $670-700/mt FOB, which is not so competitive in the EU as most offers from Asian suppliers are at €680-720/mt CFR at the €1 = $0.99 rate.
Asian HRC producers have also become more active in their offers to Turkey. Once the Russians stepped back from offering after being sold out, buyers have started reporting they received $640-650/mt CFR from South Korea and around $630/mt CFR from Japan. India’s price position is not clear as some sources report the official offers are at $650-665/mt CFR, the same as a week ago, while some state there are negotiations at $630/mt CFR.
