Moods and price expectations in Turkey’s hot rolled coil market get weaker day by day, resulting in a significant slowdown of business activity and some panic in the market as no one is able to see the situation clearly. As a result, the workable levels, for Turkish HRC specifically, have dropped significantly, though no serious trade has been reported. Although officially mills are holding their prices at $480/mt FOB-ex-works and above, the workable level is estimated at no higher than $460-470/mt FOB/ex-works. “Locally mills cannot find a buyer and, if they find one, they are open to any negotiations. So any price can be possible for now,” an Iskenderun region-based source said. Others estimate that Turkey may be trading HRC at $440-450/mt FOB/ex-works shortly.
In the import segment, prices from various suppliers have dropped by $5-10/mt over the past week. Ex-Russia HRC is being offered by two mills at $455-460/mt CFR Turkey for end-of-May shipments. Ukraine’s Metinvest has been voicing $465-470/mt CFR, while buyers believe the level can be negotiated down by at least $5-10/mt. Indian sellers are back in the Turkish market with the most aggressive offers at $455-460/mt CFR, with no takers for now.
