Flats producers in Turkey have raised their domestic hot rolled coil (HRC) prices over the past week and have managed to increase the workable levels in several deals. The higher price levels have become acceptable to buyers given the surge in import scrap prices, still high slab offers, and the overall relatively positive atmosphere in the market. However, for the medium term, the outlook is not so optimistic.
By the end of the week, most mills in Turkey have started offering HRC in the domestic market at $680-690/mt ex-works and up to $700/mt ex-works, which is at least $20/mt higher than previously. Moreover, some sources have reported deals at $660-670/mt and up to $680/mt ex-works, clearly showing a significant rise in workable levels. Import HRC offers from China have remained at $600-605/mt CFR and in some cases a little higher than that, but they are foreseen to increase soon.
In the coated steel segment, HDG domestic prices are now at $850-900/mt ex-works, versus around $840-860/mt ex-works available earlier. The PPGI indications are now mainly at $980-1,000/mt ex-works and above, up from $940-970/mt ex-works. Turkey’s cold rolled coil (CRC) prices are at $800-820/mt ex-works, up by around $40-50/mt over the past week.
Sources, however, though the market is positive for now, are not very confident that the targeted levels will be acceptable for long, unless there is another strengthening of the import scrap market. “HRC prices have increased gradually, not as sharply as we seen in coated steel. Such levels may work for some time for the domestic market, but for exports I doubt any of that would work against the Asian offers,” a source told SteelOrbis.
