Turkey-based hot rolled coil (HRC) buyers have been actively restocking with HRC of several origins, including domestic products and products of various import origins. The high price level in deals has been maintained given the limited allocation and firm prices for raw materials and semi-finished products.
According to sources, at the end of last week over 60,000 mt of ex-South Korea HRC were traded to Turkey in at least two deals at $425-427/mt CFR effective, with the cargoes for September delivery. In addition, Russia’s NLMK sold its allocation to Turkey mostly at $430/mt CFR, almost in line with the initially announced offers for July production. Market insiders evaluate the volumes between 20,000-30,000 mt, SteelOrbis has learned. In addition, some ex-EU HRC tonnages were traded last week before market sentiment improved, but the details were not disclosed by the time of publication. Ukraine insists on $410/mt CFR for small coils and $425-430/mt CFR for big coils, with negotiations continuing. The supplier is sold out for big coils for July production and has minor lots to trade for small coils, SteelOrbis has learned.
Some sizable volumes have also been traded in the local market last and this week at $420-425/mt ex-works and up to $430/mt ex-works, to be delivered in August. Following the deals, offers from the Turkish mills increased, supported by raw material prices. Offers vary in a wide range depending on the mills’ positions and the buyer. Realistic levels are reported at around $440-450/mt ex-works, while indications at up to $460/mt ex-works and above are also being voiced in the market.
