Turkish HRC buyers have remained cautious towards purchases, particularly from abroad, even though only Chinese offers have been falling, while prices of other origins and domestic HRC have maintained higher levels. Some deals may be concluded shortly particularly for Russian and Chinese material, but customers in Turkey are likely to push for additional discounts.
By the end of the current week, the difference between ex-China non-VAT HRC offers and regular Chinese HRC offers for Q195 3mm and up material has widened further, with the lowest levels reported at $474-475/mt CFR, versus $485-490/mt CFR standard indications. “They [non-VAT traders] have simply offered something negotiable to keep the market’s interest. In reality, if this level is confirmed by buyers today, there is no way to get a response from the [Chinese] mill. And on Monday there will a new reality,” one Turkish buyer told SteelOrbis. According to sources, a few re-rolling companies from Turkey are in the market and may proceed with a booking shortly, particularly to compensate for the previous higher-priced deals. Ex-China HRC offers for pipe-making breakdowns are at $512-515/mt CFR, down from $525/mt CFR earlier. All Chinese HRC cargoes are currently offered for December shipments.
Aside from China, few Asian suppliers are in the market to sell to Turkey. According to sources, Taiwan is in the market to sell full vessel cargoes of 50,000 mt at $515-516/mt CFR, while one of the Japanese suppliers is offering at $525/mt CFR. Vietnam is out of the Turkish market reality with $510/mt FOB offers, which translate to around $548-550/mt CFR. Similar levels have also been reported for ex-Malaysia HRC, but this origin has an advantage in Turkey, being a duty-free one.
Ex-Russia non-sanctioned HRC offers have slid from $505/mt CFR to $495-500/mt CFR, with bids reported by Turkish buyers at $485/mt CFR or slightly above. The sanctioned supplier is at $480-485/mt CFR, with buyers’ price ideas reported at least $20/mt lower, taking into account weaker Chinese indications.
In the meantime, domestic HRC offers in Turkey for December deliveries are at $535-550/mt ex-works depending on the mill, with some of the producers being sold out due to limited allocation resulting from scheduled repair works.
