The hot rolled coil (HRC) market in Turkey has started to feel a little more optimistic lately due to the improved import scrap price levels in the most recent deep sea sales. At the same time, China has become less aggressive and its official offers have moved back up to above $600/mt CFR base for HRC, although some sources believe the lower levels are still achievable. In fact, unlike the longs segment, most flat steel buyers are not so sure that a more positive scrap market will help HRC prices to rebound. “HRC was overpriced previously and neither local or export demand are so great. We were heading to $700/mt and below, and I believe this indeed should be the level,” a source told SteelOrbis.
According to sources, the latest official HRC offers in the local Turkish market have been at $720-735/mt ex-works base, while $700-710/mt ex-works are also considered to be available. For now, most mills prefer not to voice firm indications and are aiming to evaluate the market. As regards exports, $680-690/mt FOB levels are considered available nowadays from Turkey, though they are not so workable in the EU. Sources expect to hear lower indications, against the backdrop of the ongoing steel fair in Milan.
In the import segment, ex-China Q195 3 mm HRC offers are mainly reported at $605-615/mt CFR, up by $20-25/mt over the past week. Some buyers believe $590/mt CFR may still be available, but only from rare sellers. The latest offers from South Korea were at $640/mt CFR and from Indonesia were at $620/mt CFR, while Russia prefers to stay away from the Turkish market for now, not being able to compete.
