Business activity in Turkey’s hot-rolled coil (HRC) market has diminished this week, under pressure from severe currency fluctuations and negative expectations. In addition, exports remain slow as the EU is waiting for the new quota round to be opened.
According to sources, current official domestic HRC offers in Turkey are standing mainly at $890-900/mt ex-works, although buyers report $870-880/mt ex-works levels are quite possible to reach at present. In the local retail market, hot-rolled sheets are sold at around $930-950/mt ex-warehouse for December production, while the material already in stock is available at up to $1,000/mt ex-warehouse, SteelOrbis has learned.
In the export segment, according to sources, HRC prices have been settled at $850-875/mt FOB with some mills still offering at $900/mt FOB in their official levels. Up to 40,000 mt of HRC have been reportedly sold to Egypt at $870-875/mt FOB in addition to the previously closed deals at $880/mt FOB. “There is no buyer in the EU, and no quota until January. All ports are still full of vessels carrying cargoes from India,” a Turkey-based exporter said.
As a result, domestic HRC prices in Turkey have moved down by around $25-35/mt over the past week, while the export prices have declined by around $20-30/mt over the same period.
Import offers are scarce for now since CIS-based mills are taking their time to announce their HRC offers for January production, SteelOrbis understands.