Hot rolled coil producers (HRC) in Turkey have started the week with an attempt to increase their offer levels, following the uptrend seen in the import scrap segment. However, although such a move is an expected one, market insiders doubt the higher prices for HRC will be accepted given the lack of demand.
The new offer range for HRC from Turkey has been voiced at $390-405/mt ex-works/FOB and above depending on the supplier, being available for both local and export customers. Before the scrap price increased in the deals disclosed at the end of last week, it was possible to find HRC at $380-395/mt ex-works in the domestic market and at around $385-400/mt FOB for export. “All [mills] are trying to increase by $10-20/mt,” a HRC seller to Turkey said.
Market players, however, are somewhat skeptical regarding whether the prices will be accepted by the market, pointing out the still weak internal consumption in Turkey. In addition, the trade to the EU seems to have faded for now due to the uncertainty regarding the antidumping case against Turkey and its possible consequences. “The market is very confusing as China has been buying a lot, but the CIS mills are increasing prices or staying firm. But the EU is not buying anything,” a trader told SteelOrbis