Business activity in Turkey’s hot rolled coil (HRC) market has remained rather weak in terms of domestic and export demand, while prices have continued softening, additionally being under pressure from sliding scrap prices. However, some interest has been seen in the import segment and ex-China material is reported to have been booked, which may be a signal that prices have reached the bottom.
HRC offers in the domestic market in Turkey has moved down by $5/mt over the past week to $670-690/mt ex-works. However, market players mainly agree that the workable level is at $660-680/mt ex-works depending on the supplier, order size and the lead time. Turkish mills are mainly in the market to sell for production at the end of April and in May. In addition, there is talk that one of the mills has stopped HRC production for at least 15 days since it has some excess stock. As regards exports, Turkey’s pricing is somewhat vague since buyers’ bids are very low. According to sources, suppliers agree to deal at $650-660/mt FOB, while their official offers are $10/mt higher. However, bids are mainly at $610/mt FOB, from European buyers in particular.
Import offers from China have slid to $575-580/mt CFR for April shipments, from $580-590/mt CFR last week. Sources report there is some delayed demand at least from the re-rollers’ side since they have not been buying for a while now. In fact, there is information about a 15,000 mt booking from China at $575/mt CFR very recently and most market sources consider it to have in fact been done. “There may be more deals and, if that happens, buyers may feel that this is the bottom,” a trader told SteelOrbis. The latest offers ex-China are reported at slightly above $570/mt CFR.
The offers from Egypt are at $640/mt FOB or around $660-665/mt CFR, but the sources believe it the level may be workable only if effective. India remains at around $660-665/mt CFR depending on the producer and South Korea is still offering at $680/mt CFR.