Some HRC producers in Turkey have continued increasing their offer levels for the local and export markets, mainly citing the situation regarding fuel costs and high freight rates, as well as the general caution in the global market amid the ongoing war in the Middle East. Some of foreign suppliers, particularly Egyptian and Russian mills, may take advantage of the situation, being the closest geographically to Turkey, while some Turkish buyers might still be interested in booking a large cargo from Asia for June delivery. Despite the slight uptrend in prices, demand is not yet supportive.
By the middle of the week, some Turkish HRC producers started offering at $610/mt ex-works in the domestic market, up from $590-600/mt ex-works in their earlier offers. Some, however, have decided to maintain their offers at $580-595/mt ex-works, most probably not seeing sufficient support from the market fundamentals. Demand in the domestic market remains moderate, with some buyers being cautious as regards restocking. Regarding exports, Turkish mills are mostly aiming for $590-610/mt FOB depending on the supplier and the order size, while $575-580/mt FOB levels may still be possible for serious buyers.
Import offers from China for Q195 material have remained at $505-515/mt CFR levels for April and May shipments, with one deal rumored in the market for a full cargo. No price has been disclosed yet, but sources assume that, if true, the deal would have been signed at $495-505/mt CFR. No fresh offers have been heard from Malaysia, with the supplier there due to return to the market next week. Offers from Egypt are now indicative, following earlier indicated sales at $590-600/mt CFR. Currently, the Egyptian supplier is targeting around $575-580/mt FOB, which is closer to $600/mt CFR Turkey.
As for Russia, according to sources, around 25,000-30,000 mt of non-sanctioned HRC was sold to Turkey within around $510-520/mt CFR. Moreover, taking into account the market circumstances, the supplier is likely to increase its offers by at least $10/mt for remaining possible lots for April shipment. Sanctioned HRC from Russia is available at $460/mt FOB Black Sea and $430-435/mt FOB Baltic Sea, making it around $480-485/mt CFR Turkey and the MENA region. The Russian suppliers prefer to focus on the latter, SteelOrbis understands.
