The unfavourable market conditions in Turkey’s flats market have not left local hot-rolled coils (HRC) producers a chance to keep prices at $700/mt. The mills took a decision to provide discounts, trying to spur buying and to somewhat balance low-priced imports. In addition, some low levels were offered to certain buyers in order to keep them away from cancelling earlier closed deals at much higher levels. The material is being offered for end-of-August deliveries and the producers seem to have trouble selling in both domestic and export markets.
Currently, the domestic HRC prices in Turkey are at $660-680/mt ex-works, while earlier most of them were at $700/mt ex-works and above. Some of them are still voicing such levels officially to some buyers, but in reality the market is lower than that. Moreover, buyers are expecting additional $10-20/mt discounts. It is also worth mentioning that much lower levels were offered by mills to certain customers in order to make their average order price lower, considering the earlier closed deals at much higher levels. “Some of them offer cheaply to the market, so that the buyers would cancel their previous orders,” a trader said.
As regards exports, the pricing is not quite clear, taking into account low trading activity. The general workable level for the markets of North Africa is estimated at $640-650/mt FOB and in fact one sale for less than 10,000 mt has been reported at $680/mt CFR Egypt. In the EU, the interest in Turkish HRC is low due to generally slow restocking ahead of the holidays. The price idea from some buyers is at $600/mt FOB or below, taking into account also competitive offers for other origins. Some of the producers may be ready to offer at $620-630/mt FOB for the European markets, sources believe.
In the coated and cold-rolled coil (CRC) segments, the prices have weakened substantially over the week. HDG is mainly available at $820-830/mt ex-works with $800/mt ex-works levels also considered possible. Moreover, according to the buyers, some Turkish suppliers might give $780/mt FOB for exports. PPGI domestic offers are at $920-950/mt ex-works versus $980-990/mt ex-works last week, while for exports, according to sources, $900-915/mt FOB levels may be seen. Turkish local CRC prices are at $780-820/mt ex-works, $30-40/mt down. However, most of the market players estimate that $10-20/mt discounts are possible. Re-rollers complain that sales are very slow, underlining that specifically the domestic trade is “less than dead.”