Turkish mills have once again started the week with a price increase for hot rolled coil. Unlike the trend in the longs and billet segment, where the steep price rises have been caused by the recent developments in China, the reasons for the upturn in flats are more prosaic - higher scrap prices and filled order books.
According to sources, the indicative local HRC offers in Turkey have been voiced today at $1,130-1,140/mt ex-works depending on the mill, up $50/mt from last week. Still, most market sources believe business can be done at around $1,110-1,130/mt ex-works levels. The majority of domestic offers are for end of August-September production. In the export segment, the situation is not yet clear, while some mills are reportedly offering $1,130-1,150/mt FOB for September production.
Offers from the CIS are to gain more clarity towards the end of this week unless the sellers opt to announce new levels after the holidays. At the end of last week, the indication from one of the Russian mills was heard at $1,110/mt CFR versus $1,050/mt CFR in deals closed earlier by another ex-Russia producer. Similar levels were fixed for ex-Ukraine HRC last week, but the supplier is expected to revise the offers upwards given the current domestic prices in Turkey.
