The price gap between Turkish domestic hot rolled coil (HRC) and offers from China has widened this week. The decline in futures prices in China has dragged down import price indications following a brief rebound last week. Local HRC producers in Turkey, on the contrary, are attempting to pull up their prices, citing limited allocation for September and early October deliveries. In addition, the Turkish mills are trying to take advantage of the antidumping rates announced against HRC imports from China, India, Japan, and Russia.
The antidumping duties are not in force yet and a majority of market players expect the definitive measures to be announced in the second half of September, which means that material for November deliveries may be affected. As a result, pressure has increased on Chinese suppliers, which are the main players in Turkey's HRC segment. In the meantime, Turkish producers have increased their official domestic prices for HRC by $5/mt to $585-590/mt ex-works, as reported by both mills and customers. Some, however, have mentioned that offers at $600/mt ex-works and slightly higher are also being voiced, but for small tonnages and for shorter lead times. “I bet the big boys [buyers] may still get $580/mt ex-works, but it seems no one now is considering levels of $565-570/mt,” a re-roller told SteelOrbis.
Offers for Q195 HRC from China, which were at $525/mt CFR on average at the end of last week, are now officially at $513-519/mt CFR and, moreover, some sources are reporting indications at $509/mt CFR as well. The prices are mostly for 40,000-45,000 mt vessels and for shipments in the first half of October. No new deals have been reported yet. “Some restocked earlier and may be considering buying more if prices go even lower, in order to average out previous sales. But with the antidumping issue and the unclear expectations on the inward processing regime, I guess everyone is scared to buy for now,” a HRC seller said.
