The price situation in Turkey’s HRC market has remained firm with some suppliers inching up their offers after the holiday. Still, the market outlook is mainly based on risky shipments from Asia, the lack of supply from nearby markets, high freight rates and high overall logistical costs. In the meantime, support from demand from traders and end-users is still not strong.
Domestic HRC prices in Turkey have slightly inched up on the lower end of the range and are currently at $620-630/mt ex-works base in the official indications for June shipments. Still, the price of $615/mt ex-works is considered possible from a few suppliers for sizeable and serious order. As for exports, the ex-Turkey HRC indication is evaluated at $605-620/mt FOB, up $5/mt from the pre-holiday levels.
China’s base HRC offers for May shipments have been mainly reported at $540-550/mt CFR, up from $533-545/mt CFR seen before the holiday. The price rise is generally attributed to the freight rate situation globally and a slight increase in futures in China. However, Turkish buyers seem to be still refraining from active negotiations for Asian cargoes. According to sources, the ex-Malaysia price idea for HRC is at around $615/mt CFR for May shipments, which is considered too high according to the current local market pricing, even taking into account that Malaysia is a duty-free origin. Egypt’s HRC, which is also tax free in Turkey, is expected to be on offer later during the week. For now, the mill is not accepting requests from buyers, according to sources.
The latest price from Russia stood at $545/mt CFR for May shipments and for non-sanctioned material. According to market information, the supplier has managed to trade an average of around 50,000 mt and is currently sold out. The sanctioned material from Russia is evaluated at $500-505/mt CFR, up from the latest $490-495/mt CFR levels, and still marking the lowest price level available for Turkish HRC buyers.
