The hot-rolled coil (HRC) market in Turkey has been slow in terms of business activity, mainly because buyers prefer to wait for a clearer picture in the scrap, cold rolled and coated steel segments where a downward trend is being seen. Another factor is that import HRC prices in Turkey have remained much lower than domestic prices, exerting additional pressure. However, the discounts provided by Turkish mills are still limited, since there are some concerns regarding delays in shipments from China for earlier booked volumes.
The domestic HRC prices in Turkey for July deliveries are now standing at $1,250-1,350/mt ex-works base officially, while the workable levels are estimated at $1,220-1,230/mt ex-works and even lower. Previously, the official offers from the mills were at $1,300/mt ex-works and above. “The local buyers are waiting. They want to see how low HRC can go. Also, HDG prices are nearing $1,300-1,350/mt ex-works, which is another $20-50/mt drop over the past week,” a source told SteelOrbis.
In the import segment, the official ex-India HRC offer is at $1,120/mt CFR, although the workable price is estimated at $1,080/mt CFR. Chinese prices are not clear yet: some of the sources report Q195 quality is still at $1,030/mt CFR, while others say SS400 quality of HRC has been available at as low as $970-980/mt CFR.
It is noteworthy that Russian mills have been rather active in offering HRC to Turkey, despite problematic payments, insurance and shipments. According to sources, one Russian mill is close to sealing a deal for a 30,000 mt lot for May production at around $1,000/mt CFR, while the same price has been offered by another Russian mill for a lot to be shipped from Novorossiysk. The third mill, which normally used to be the most expensive in terms of HRC and which is now the only one not under sanctions yet, is aiming to sell at $1,000/mt FOB. The freight is estimated at $45-60/mt from the Black Sea depending on the cargo size.
