Despite that the overall demand for HRC in Turkey has remained slow and insufficient, the prices offered by Turkish mills have barely moved and the suppliers have avoided discounts in both domestic and export markets. Offers to the EU, moreover, have increased as per official levels as Turkish producers are almost sold out for August and are currently not in a rush. Domestic offers have also remained firm, mainly due to higher China and, once again, limited allocation for August deliveries from Turkish mills.
The latest local HRC offers in Turkey have been reported at $535-545/mt ex-works, in line with the past week. Buyers assume that minor discounts are possible for serious orders and large lots. On exports, the official offers are voiced mainly at $525-535/mt FOB and above, signaling that the mills have returned to higher levels while not feeling much pressure after the earlier concluded sales. Still, the levels of $505-515/mt FOB base are considered reachable for complicated breakdowns, although the sellers seem to be not very hungry, at least for now.
Import offers from China have settled at $475-483/mt CFR for 3 mm and up Q195 material versus $470-475/mt CFR seen last week. Some of the suppliers are offering $485/mt CFR and even slightly above, which is not very attractive for Turkish buyers at the moment.
Instead, Turkey expectedly has been interested in HRC from the Black Sea to be supplied by a non-sanctioned Russian mill. Particularly, according to sources, deals for over 35,000 mt have been closed at $485/mt CFR on average, for August shipments, slightly above the levels of the previous sales round. Another Russian mill, a sanctioned one, according to buyers was offering around $455-465/mt CFR, but had preferred selling to MENA region at higher price levels – around $460-465/mt CFR.
Egypt has not been offering HRC officially to Turkey this week, finding the market too weak and the prices too low at the moment. Sources assess the supplier would be looking to nothing below $535/mt CFR while Turkish buyers’ price idea is closer to $525/mt CFR.