The new week in the Turkish flat steel market has started with a slight price decline, particularly as China has returned with clearer offers at lower levels compared to those seen previously. As a result, the cautious upward sentiments observed among some Turkish mills last week have vanished for now and buyers are sure that additional discounts on prices are possible.
Ex-China offers from large traders for 45,000 mt of Q195 grade HRC of 3 mm and higher have slid from $505/mt CFR at the end of last week to $495/mt CFR currently. Other suppliers of HRC from China, according to sources, are offering at closer to $490/mt CFR and a couple of dollars below that may be possible.
Aside from China, for which no deals have been reported yet, some Turkish buyers have decided to restock from Egypt. According to sources, up to 30,000 mt of HRC have been traded from Egypt at $535-540/mt CFR, with the latest offers at $535/mt CFR for April shipment. Last week, the initial offers from Egypt stood at $540/mt CFR. “Egypt seems more active here [in Turkey] while there is pressure selling to the EU due to the ongoing trade case,” a trading source told SteelOrbis.
South Korea, according to sources, has been voicing HRC offers to Turkey at $530-535/mt CFR for commercial base grade, while the levels reported earlier stood at closer to $550/mt CFR. Market sources assume that the decrease may be due to the recent announcement of additional 25 percent duty on steel imports, which affects South Korea.
Domestic HRC prices in Turkey are at $540-550/mt ex-works, down $5-10/mt over the past week. However, large buyers, including pipe-makers and re-rollers, are quite sure levels of $530-535/mt ex-works are achievable.
