Hot rolled coil prices have inched up in Turkey over the past week, but the uptrend has not been supported by trade since buyers have been aiming to see a clearer market picture after the Chinese announcements due in the first half of March.
Import HRC offers from China have increased slightly by $5-10/mt to $495-500/mt CFR Turkey for 45,000 mt Q195 HRC lots of 3 mm and higher. The cargoes are for April shipments. Still, while a couple of cargoes were booked earlier at lower levels, most of the new buyers voice their targets at not far above $480/mt CFR. Egypt is not offering currently to Turkey, focusing on alternative destinations, while Japan and Taiwan, according to sources, have remained at $520-525/mt CFR levels.
Turkey’s domestic HRC prices have increased by around $5/mt depending on the supplier, for April deliveries, up to the general range of $550-560/mt ex-works base. However, given the positivity in China’s futures market today, February 26, most of the offers are voiced closer to the upper end of the range.
As for exports, Turkish HRC producers are aiming at $540-550/mt FOB base for its main overseas outlets, while buyers’ price ideas are on the lower side still. According to some sources, $575-600/mt FOB effective levels might be workable with some buyers, considering around a $40-45/mt breakdown in extras, which comes to $530-540/mt FOB base, SteelOrbis understands. There has been some interest reported from European countries and Ukraine recently.
In addition, given the rapid HRC price increase in the US as a result of Trump’s tariff ideas and announcements, some Turkish mills have regained interest in exporting to this destination. The offer price for the US market from Turkey, but also from Egypt, has been at $550/mt FOB this week as an indication. “With the freight, 25 percent Section 232 tax and additional financial and transportation costs, it comes close to $800/mt delivered to the US,” a market source told SteelOrbis.