As the week starts, the Turkish hot rolled coil (HRC) market has witnessed another price increase in offers from both local and overseas suppliers. The main reason is the quick pace of the import scrap price rise, and also some buyers have started to show an interest in restocking in the upward moving market. The import offers, particularly from Asia, have also increased as some suppliers have recently sold good volumes, while others see positive sentiment in their local market.
According to sources, local HRC producers in Turkey have increased their prices by $10-20/mt from offers at the end of last week. Currently, offers for January deliveries are standing at $660-670/mt ex-works, while $650/mt ex-works levels are considered by buyers to be available. The latest deals in the past week were closed at $630/mt ex-works.
In the import segment, India has increased HRC offers by $15/mt to $620/mt CFR, while China has been voicing $620-640/mt CFR, versus $590-600/mt CFR earlier. “China may be going short on Turkey’s rebound. We may see a settled offer price later this week,” a large buyer told SteelOrbis.
One Russian mill is trying to offer $580/mt CFR, versus the latest bids of $565-570/mt CFR. Another ex-Russia mil is expected to target $620/mt CFR minimum as it is under sanctions.
Along with HRC, sentiment has improved in the coated and cold rolled (CR) steel segment. Turkey’s local CRC prices have increased by $10-20/mt to $770-790/mt ex-works, while HDG base offers have risen by $30/mt over the past week to $850-880/mt ex-works. Turkey’s domestic PPGI prices have increased by $20-25/mt over the same period to $975-1,020/mt ex-works.