While import scrap prices in Turkey have softened further, though the bottom level is considered to be very near, and Turkish flat steel export sales have failed to improve and support mills’ positions in hot rolled coil (HRC) segment, the mills have once again decreased their prices. In the meantime, in the import segment, demand has stalled, partially following the deals concluded earlier from Russia and some previous restocking. But in addition, buyers are hesitating due to the tough situation as regards end-user demand.
While locally Turkish mills have been trying to maintain official offers at $585-590/mt ex-works, the market reality is at $570-580/mt ex-works or maybe slightly above. Moreover, one supplier has been offering slightly below $555/mt ex-works this week for 100 percent cash payment, buyers report. As for exports, Turkey is officially offering at $570/mt FOB but the realistic market level is considered to be $550-560/mt FOB, but still with no deals reported, particularly to Europe.
Import offers from China have been at $515-525/mt CFR this week with the lower end representing offers for non-VAT material with no interest heard in the market. Some sources report rare price ideas from buyers at $503-505/mt CFR, but it is widely believed that there would be hardly any strong demand even if those levels were provided. Turkish re-rollers, while struggling to obtain orders, seem to have preferred to restock with Russian material, deals for which were reported earlier at $528-535/mt CFR. “The demand [for feedstock] decreased in volume and some have chosen to buy in smaller lots but for way shorter lead times,” a source told SteelOrbis. The most recent offers from Russia for January production have been reported at $525-530/mt CFR for non-sanctioned material and at $500-510/mt CFR for sanctioned material.