Having sold considerable hot rolled coil (HRC) volumes to the local and export markets, Turkish mills have again increased their prices. However, market players doubt that the new levels will be easily accepted.
According to the sources, over the past 10-15 days Turkey has sold over 100,000 mt of HRC to Italy alone, with most deals done at $420/mt FOB at the highest. One large buyer, however, paid $430-435/mt FOB for direct business, SteelOrbis understands. In addition, some small lots were sold at $440-445/mt FOB, producers say. Currently, the export offers from Turkey are at $450/mt FOB base minimum for HRC to be shipped in February. However, the levels are not considered workable according to the local prices in the EU and offers from India which are coming at $460-470/mt CFR Europe.
In the domestic market, HRC has mainly been sold at $430-440/mt ex-works to re-rollers, while some pipe-makers have also restocked. At present, indicative HRC prices are at $445-450/mt ex-works and up to $460/mt ex-works. However, some offers from Izmir to Iskenderun were reported at $445/mt CFR. “Prices at $460/mt are unrealistic. Mills make these unbelievable increases, which are usually followed by sharp downturns,” a Turkish re-roller said.
