Over the past week, buyers in the local Turkish hot rolled coil (HRC) market have continued their purchases, while producers’ prices have increased by $10/mt on the lower end to $530-540/mt ex-works.
It is observed that Turkish HRC buyers have almost finished their restocking which started after the US decision to halve duties on imports of Turkish steel to 25 percent, Turkish HRC mills have filled their order books significantly as a result of their sales to both their domestic and export markets, with some mills even almost completing their sales for August output.
Additionally, the downtrend of flat steel prices in Europe, which is the biggest target market for Turkish HRC exporters, has come to halt. And with ArcelorMittal announcing additional production cuts in Europe at its German-based Eisenhüttenstadt and Bremen plants as well as its France-based Dunkirk plant yesterday, May 29, after the steel producer’s previous on May 6 to cut annual production by 3 milllion mt in Europe, the rises in HRC prices are largely expected to gain acceptance from European buyers.
As a result of the current conditions, it is believed that Turkish steel producers may further increase their HRC export prices and, supported by their fairly full order books, this rise in their export offers would be reflected in their domestic prices. Meanwhile, market sources expect demand to be weak in the short term ahead of the end-of-Ramadan holiday and the summer season, but they do not expect the weakness of demand to shape prices levels.
As for the spot market, demand has failed to revive significantly, while traders’ prices have increased by $10/mt week on week due to the rises in producers’ quotations.
Product |
Price ($/mt) |
|
Eregli |
Gebze |
|
2-12 mm HRC |
560-570 |
570-580 |
1.5 mm HRS |
600-610 |
605-635 |
2-12 mm HRC (for large tonnages) |
550-560 |
|
3-12 mm HR P&O |
590-600 |
630-640 |