Turkish hot rolled coil (HRC) offers have once again slid in both domestic and export markets. The demand has remained rather low and buyers keep waiting and pushing for lower levels while also experiencing slow sales in the coated steel segment. In addition, import scrap prices have been on the weak side, which has added to the cautious mood in the flats market also.
In the local market, official offers are now at $615-625/mt ex-works base, down $5/mt since the end of last week. Moreover, according to customers, $607-610/mt ex-works levels are also quite possible from some suppliers for serious orders. As regards exports, the realistic price levels for end-of-December shipments of HRC from Turkey are at $575-590/mt FOB, down $5-10/mt on the lower end over the past week. However, mills admit that larger discounts are needed if they want to sell to the EU. “There is no activity for exports. Even if we offer $560/mt FOB, there is no buyer,” a supplier told SteelOrbis.
Chinese HRC offers for of Q195 3 mm and up are at $538-545/mt CFR depending on the volume and the lower end of the range represents the prices for 45,000-50,000 mt lots. No new deals have been reported since the talk about a $525/mt CFR booking closed in mid-October. At the end of last week, ex-China HRC offers stood at $530-540/mt CFR.
In the coated steel segment and CRC segments, Turkish re-rollers report demand has been rather slow, and so, while official offers have been kept relatively stable, the size of discounts has been increased. The domestic hot dip galvanized 0.5 mm Z100 material is priced in the range of $830-860/mt ex-works, down $10/mt down on the lower end of the range over the past week. Local PPGI prices have softened by $10/mt to $960-1,000/mt ex-works for commercial grades. In addition, Turkey’s local CRC prices are now at $750-770/mt, versus $750-780/mt ex-works a week ago.
