Turkish HRC producers have once again increased their domestic offers and the trend is once again based on higher production costs and war-related expectations and risky imports from Asia, along with relatively high workable HRC prices in the EU market. The demand domestically, however, does not show much of an improvement, although some restocking has been done in order to minimize risks in the future period. Mills have started offering for deliveries for June, while only limited volumes may still be allocated for May.
Currently, the upper end of the range for the domestic HRC is at $630/mt ex-works, up $10/mt over the week. Most other suppliers are at $620-625/mt ex-works, up $10-15/mt from the previous indications. The level of $615/mt ex-works is considered possible for large volumes and only from a few mills, sources reported. Regarding exports, Turkey is offering at $605-615/mt FOB in official offers for May-June shipments.
Ex-China base HRC offers in Turkey have remained mainly stable at $535-545/mt CFR depending on the supplier, with the lots for sale for May shipment. A few buyers are in the market to negotiate or, rather “to test the waters”, and they assume $5-10/mt discounts should be possible to get based on the current market situation.
The official price targets for non-sanctioned ex-Russia HRC have been reported at $545/mt CFR for the remaining lots for May shipments, up from sales in the range of $530-540/mt CFR reported last week.
Along with Russia, Egypt is expected to continue benefiting from the risky shipments from Asia, also being able to supply with shorter lead times and smaller lots. The latest price indication has been reported at up to $610/mt CFR for May shipment, but the mill is expected to offer at higher levels by the middle of the week.
