The Turkish hot rolled coil (HRC) market has been rather quiet this week, mainly as buyers are reluctant to take action due to the absence of China, but also owing to some negative sentiment that has started to form in the market. One factor is the decrease in scrap prices, at least for now, and another is the expectation of a further price decline in the EU. However, currently Turkish mills are not under much pressure to sell HRC while offering mainly end-of-April production.
Domestic HRC prices in Turkey are at $700-720/mt ex-works these days, slightly below last week’s levels. However, some buyers report $690/mt ex-works is reachable currently and, moreover, this level has also been heard on CFR Marmara basis. As for exports, Turkish mills are still offering at $690-700/mt FOB, with not much activity seen due to the previous restocking observed in the EU.
Import offers for Chinese material are indicative due to the long holiday and have been reported at $600/mt CFR on average for Q195 grade of 3 mm and higher. However, some sources expect a decrease of at least $10/mt once China returns to the market.