The general mood in Turkey’s domestic HRC segment has been quiet this week so far, with some mills providing slight discounts in negotiations, but these are not considered to constitute a price downturn, but are just more like business being done at reasonable levels. The producers are not under much pressure as their costs are high due to recent increases in both the import scrap and slab segments. The awaited return of China from its holiday has resulted in a significant upturn in its offers to Turkey, while most other suppliers of HRC to Turkey prefer to refrain from active negotiations.
The current domestic HRC prices in Turkey are at $630-655/mt ex-works base, down $5/mt over the past week, although some official levels are still voiced at $660/mt ex-works. Most mills in Turkey are offering for July deliveries, with only limited volumes offered for June. As for exports, Turkey is offering at $630-635/mt FOB for July shipments, down $5/mt on the upper range over the past week.
Import offers from China have been reported at $560-570/mt and up to $575/mt CFR for June shipments, up from $545-555/mt CFR available earlier. According to sources, these are coming for material from second-tier mills. The price levels are not considered workable against Turkish domestic prices, particularly considering the long lead time and the necessity to book in large lots.
No fresh offers have been heard from Malaysia with the latest realistic price reported at $620/mt CFR for June shipment. An Egyptian mill, which, according to sources, has been facing some issues with electricity supply to one of its mills, is not quoting to the Turkish market. Some traders reported that its latest offer was at $645/mt CFR at the end of last week.
Russian suppliers are not in the market yet since it is a little early to offer for July shipments and they would like to see the market settle first. Some buyers expect the non-sanctioned Russian mill to offer at around $580-585/mt CFR Turkey, slightly above its latest deals for June shipment.
