The new week has started in Turkey with a softening of HRC price indications in both the domestic and international markets mainly due to still insufficient demand, lower scrap prices which have been triggering stronger pressure from buyers, as well as overall uncertainty regarding the financial situation affecting future sales. Still, buyers are mainly refraining from large purchases, especially buyers in Europe, expecting even lower offers to be available shortly.
The official domestic HRC prices for August delivery in Turkey are at $630-650/mt ex-works base, down $5/mt from the official levels last week. However, according to sources, some of the mills have consented to hold negotiations at $625-627/mt ex-works, while some might step down to $640-645/mt from the initial $650/mt ex-works level. “The market is really not good these days and I think large buyers will target $615-620/mt, or maybe $610/mt ex-works even,” a local market player told SteelOrbis.
As regards exports, the situation is no better in terms of the demand and bids, which are low and rare. According to sources, the realistic offer levels for ex-Turkey HRC are at $615-625/mt FOB, while some of the official offers are still at $630/mt FOB. “They [Turkish mills] have to be below $600/mt FOB to be competitive,” a European trading source told SteelOrbis.
Import offers from China are at $545-555/mt CFR, with the upper end corresponding to second-tier mills and the lower end to non-VAT offers. According to sources, a small lot of HRC (around 5,000 mt) has been booked at $545-548/mt CFR, while a re-roller has booked at slightly below $540/mt CFR.
