Low business activity locally and in key export outlets has exerted pressure on Turkey’s HRC prices. Moreover, Turkish mills are expected provide additional discounts shortly in order to sell.
Domestic offers for October deliveries have decreased by around $5/mt to $490/mt ex-works base price, while some deals at $483-485/mt ex-works levels have been reported. The export offers for HRC are set at $485-490/mt FOB officially, but business activity has been almost zero lately. The key reason is EU customers being reluctant to pay the mentioned levels, having more competitive offers locally and from alternative overseas suppliers. In particular, India is offering $475/mt CFR to Europe and for September shipments, while Turkey is in the market to sell for October at the earliest. “The equivalent here is $435-440/mt FOB to sell to the EU. And frankly if I were the buyer I would prefer India due to shipment,” a trader stated. Some mills reported bids from Spain at around $450/mt FOB, which is still far below the current offered levels. “The price of $470/mt FOB will be there soon, but it is still not good enough,” another source told SteelOrbis.
In the import segment, Russian steelmaker MMK sold a total of 40,000 mt of HRC for September production from $475/mt CFR to $480/mt CFR and slightly above for big coils, SteelOrbis has learned. Metinvest International S.A. has sold a lot to a Turkish pipe producer at close to $470/mt CFR. In the meantime, offers from India have been reported at $475/mt CFR for September production. “In the coming round, prices might lose $10-15/mt at least,” a Turkish re-roller mentioned.