According to sources, a couple of Turkish buyers have lately revealed interest in buying import HRC, following a certain period of evaluating the market situation. While earlier there were expectations for China becoming more positive, following the announcement about the monetary policy for next year, now the optimism has become somewhat milder.
As a result, in recent days at least one 45,000 mt HRC cargo from China for end-of-January or early February shipment has been booked to Turkey, while overall sources report the total volume as 100,000 mt, i.e., in two deals. The price is said to be at $478-480/mt FOB or around $518-520/mt CFR or maybe slightly below on delivered basis. The buyers, according to market information, are flat steel re-rolling companies located in Turkey’s Marmara region.
During most of the week, official HRC prices from China were at $530-535/mt CFR from prime suppliers, while by the end of the week, after the reported deals and China’s announcement, the levels settled at $525-529/mt CFR. Lower offers at $514-515/mt CFR have also been reported but for non-VAT HRC cargoes. Some sources have been reporting rare bids at $510/mt CFR. “There is little chance suppliers will go for it, at least while there is no collapse in the Chinese iron ore and futures markets,” a source told SteelOrbis.
The domestic prices for HRC in Turkey are at $570-580/mt ex-works levels officially, while $560-565/mt ex-works levels are considered possible. Moreover, during the week there has been an indication reported at $555/mt CFR Marmara, but it has not been fully confirmed by the time of publication.