Business has made a quiet start to the year in the Turkish hot rolled coil (HRC) market. Buyers are trying to see a clearer price trend and general market situation, while the number of suppliers has been limited due to the ongoing holidays in the CIS.
In the local market, offers for HRC have been mainly reported at $810-825/mt ex-works for April deliveries, up by $5/mt since before the holiday. Some buyers report that they have received prices from some mills at up to $830/mt ex-works. However, no serious negotiations have been heard in the market as buyers have been trying to gain a clearer picture of the market prospects. The Asian market has been weakening since late December, but HRC and scrap prices in Turkey are strong. “Buyers today are cautious as regards restocking at above $800/mt ex-works because, if the market for April production coated and cold rolled steel drops, the re-rollers will be in trouble,” a source told SteelOrbis.
The CIS-based HRC producers are out of the market, mainly until January 11. The latest deals were closed from Russia at the end of December at $765/mt CFR. No firm offers have been heard this week though some customers report that levels at up to $790/mt FOB have been voiced as an indication.
