Following a certain period of a relatively modest export demand for Turkish HRC, mills in Turkey have finally seen higher demand particularly from European countries. Coupled with higher scrap prices and a better mood, resulting from the latest protectionism-related steps by the EU, Turkish HRC producers have managed not only to sell large lots in the past couple of weeks, but also to increase workable prices gradually.
According to sources, in the past 10-15 days Turkish mills have altogether traded at least 160,000-170,000 mt of HRC for export, particularly to European countries, mainly Italy and Spain but also to the Balkan region. The price level in the transactions started at $550-555/mt FOB base, and the majority of the volumes were booked at $560-570/mt FOB and latest were at $575/mt FOB, market players report. The deals were closed mainly for May shipments and, although the producers claim to be sold out, traders are quite sure that at least a third of May rolling HRC should be available considering the general production volumes. Currently, Turkish mills are offering HRC for export for June shipments at $575-585/mt FOB, SteelOrbis has learned.
Turkish mills have been aiming to pull up their HRC pricing for several weeks now, citing higher scrap prices and rising production costs, but the adjusted safeguard in the EU as well as the announced AD rates against Egypt, Vietnam and Japan have created the right mood for higher export demand for now. “Egypt will certainly be less competitive [in Europe], but Algeria will step up. For Turkey, we have lower AD rates, but the quota volume is reduced, though not tragically,” a market source said.
With the support of active exports, Turkish mills have raised offers in their local market, and the price increase is considered to be justified. Currently, domestic offers are at $580-590/mt ex-works, and up to $600/mt ex-works as voiced by a couple of sources. “We have a $30/mt rise over the past two weeks in the local market and up to $590/mt ex-works is reasonable, but above that is a little premature for now,” a Turkish buyer told SteelOrbis.
