Turkish HRC offers under pressure

Friday, 02 August 2019 17:14:23 (GMT+3)   |   Istanbul

Low hot rolled coil (HRC) import offers from a wide range of suppliers have been putting pressure on local mills in Turkey, resulting in softer pricing. Turkish exports to the EU are facing challenges as well, and so market players in Turkey anticipate discounts in the near future. Currently, Turkish HRC mills are mainly in the market to sell for October shipments.

Turkish mills were offering September production HRC at $520-530/mt ex-works. At present, the workable level is estimated at $510-520/mt ex-works and is under pressure from buyers, SteelOrbis has been informed. “Today it seems pipe makers are under attack as locals want to kick out EU cargoes,” a source said. Import offers have been coming at $500-520/mt CFR, with some deals closed for EU origin HRC at $505/mt CFR and slightly above.

HRC export offers from Turkey have been kept at $505-510/mt FOB, with levels $5/mt lower also being possible. However, demand in the EU, the key outlet, is reportedly low and Turkish prices are not considered workable. Currently, Turkish HRC export prices are at €465-470/mt ($516-522/mt) CFR to southern Europe, while the local price in Italy is more or less at €450/mt ex-works. The most recent sizeable ex-Turkey deals were closed around two to three weeks ago for September at €455-465/mt ($500/mt) CFR to Spain, Portugal and Italy, sources report. These levels came to around $490-498/mt ($505-516/mt) on FOB basis, based on the currency exchange rate of €1 = $1.125 valid at the time.

€1 = $1.11


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