HRC producers in Turkey have started the week with another slight increase in their domestic prices, aiming most probably to test the market response in view of firmer scrap prices and also the upward price attempts in the EU. For now, local buyers in Turkey are taking their time to book at the new levels and prefer to watch market developments, while a certain spike in demand has been seen in the import segment. However, although China is offering the most competitive offers pricewise, preference is still given to higher prices from suppliers in nearby locations with shorter lead times.
Last week, an additional 10,000-15,000 mt of HRC were booked from Egypt for April-May production at up to $550/mt CFR, while the previous deals had been reported at $545/mt CFR for 20,000-25,000 mt. However, sources report that the Egyptian mill has witnessed another round of issues with electricity supply at one of its assets and that production has been temporarily disrupted.
In addition, around 30,000 mt have been purchased from Russia for April production at $500-505/mt CFR, down from the initial offers of $505-510/mt CFR. Another Russian mill has been focusing on sales to the MENA region with the latest levels reported at $495-500/mt CFR, most probably to North Africa.
Turkey’s domestic HRC prices are now at $565-580/mt ex-works base for April-May production, up $5/mt on the upper end over the past week. As for exports, prices have remained indicative at $550-570/mt and up to $575/mt FOB. “Since the previous deals were closed at $530-540/mt FOB, it is kind of hard to achieve the new levels, even though the EU is up for local price increases,” a market source told SteelOrbis.
