Domestic HRC prices in Turkey have remained relatively stable over the past week, with only some suppliers trying to pull price levels up a little in the post-holiday period. “Demand has not quite returned since it is a short week, so it is more of a statement from the producers rather that prices reflecting the actual situation,” a local trader commented to SteelOrbis. Import offers have been a little volatile as some suppliers are starting a new round of sales of fresh production, while others are trying to assess the market situation and the demand prospects.
Domestic HRC offers in Turkey for June deliveries are at $585-600/mt ex-works, slightly up on the upper end over the past week. Some offers are above $600/mt ex-works, but they are not considered relevant in the current market conditions. Export offers are at $580-585/mt FOB for now, while levels $5-10/mt lower and higher are also being voiced in the market.
Import offers from China are at $495-500/mt CFR for end-of-May shipments for Q195 HRC of 3 mm and higher, versus $485-495/mt CFR at the end of last week. No fresh deals have been reported yet. Overall, the market has been buzzing with the news about China’s recent regulation on the non-VAT trade, which is going to impact the Turkish market as well. “At least 75-80 percent of HRC sales to Turkey from China are non-VAT and we hope that the regulation works, since it will even out the prices, which would then be fair, while the volumes might not be affected so much,” a source told SteelOrbis.
Russia has started returning to the market with offers for May production, with prices for sanctioned material reported at $490-500/mt CFR to the MENA region, including Turkey. The supplier of the non-sanctioned HRC, according to sources, has been testing the market with $520-525/mt CFR indications, up from around $500-505/mt CFR deals in the last round of sales.
According to sources, Egypt has not yet refreshed its offers to Turkey and may only be back in the market next week. The latest indications stood last week at $580-590/mt CFR, up from the sales in the previous round at $570/mt CFR at the highest.
In addition, there has been talk about a 30,000 mt HRC sale from Japan at around $520-523/mt CFR Gemlik. However, some sources believe it is an old sale done a couple of weeks ago.