While local Turkish HRC prices have remained relatively stable over the past week, import offers from China have slid due to lower futures prices, putting additional pressure on offers of certain origins.
Ex-China HRC offers for July-August shipments to Turkey have slid from $485-493/mt CFR at the end of last week to $478-482/mt CFR currently. While some say $475/mt CFR is also available, many sellers still consider this level to be more of a buyer’s price idea. Two Turkish re-rollers are said to be in negotiations for a new cargo with the intention to pay $470-475/mt CFR. “It is quite low now when it seems there is more pressure on the non-VAT trade. Therefore, there will be resistance [from sellers’ side],” a source told SteelOrbis.
Offers from Russia are still officially at $490-495/mt CFR for July production and for non-sanctioned material, while buyers’ targets are $10-15/mt lower than that, market sources report. Sanctioned material, according to sources, is reported to have been sold at $460-465/mt CFR Turkey, but this information has been denied by the alleged seller. The latest offers for these materials stood at $475/mt CFR minimum.
An Egyptian mill has been offering HRC at $560/mt CFR for July shipment, with no active sales reported after last week’s deals for a moderate volume. As for Malaysia, the second duty free-origin for the Turkish market, its latest prices have stood at $550/mt CFR, with some deals concluded for a sizeable overall volume.
Local Turkish mills are offering at $560-575/mt ex-works for the domestic market, in line with last week’s price ideas. While July delivery volumes are still available, some suppliers have already moved to offers for August. As for exports, the prices for Turkish July-August shipments of HRC are at $540-550/mt FOB, mainly with $5/mt discounts considered possible for larger lots.