The general sentiment in Turkey’s HRC market has been on the slightly positive side this week, supported by higher scrap prices and increased ex-China prices. And although the current demand in both local and export markets is not so bright, the mills are also temporarily not under much pressure to sell, so that they are not only avoiding discounts, but are also attempting a slight price increase, but only in the local market.
Currently, more Turkish mills are offering at $570-580/mt ex-works in the domestic market, up from $560-570/mt ex-works available earlier, for end-of-June and early July deliveries. For now, such a move is considered more as an intention than the market reality and $560-565/mt ex-works levels are still considered achievable for good volumes. However, following the export sales closed earlier along with some domestic trades, mills are currently “not hungry for new orders and can afford to play around.” As for exports, the range of HRC offers from Turkey stands at $540-560/mt FOB depending on the destinations. Higher indications are also present, but not considered workable especially in the EU. Some inquiries are reported to be coming from North Africa, particularly Tunisia and Morocco, but for small volumes. In Egypt, import activity is minimal due to the recently announced investigation against all origins.
Import offers from China for Q195 HRC of 3 mm and higher have moved up from $485/mt CFR to $490-495/mt CFR for cargoes to be shipped at the end of June. No deals have been reported, but the price rise from China is generally considered a good sign for the market. Offers from Egypt have been coming at $560/mt CFR Turkey, with less than 10,000 mt sold so far. In addition, offers from a Japanese mill have been heard at $520/mt CFR for end-of-June shipments.
Offers from Russia for the sanctioned material have been reported at $472-485/mt CFR, including some sales closed earlier in May, while non-sanctioned material for the new round will be more firmly in the market next week at an expected level of $500/mt CFR and maybe slightly higher. The previous deals from the supplier were reported at $490-500/mt CFR for June production.