The gap between import and domestic hot rolled coil (HRC) prices in Turkey, which had been moving in opposite directions lately, has narrowed down, at least for now. The uptrend in futures prices in China has resulted in a rebound in HRC export offers, particularly in the Turkish market.
As of today, August 21, most major trading companies are pricing Q195 HRC of 3 mm and higher for October shipments and for 40,000-50,000 mt lots at $495-500/mt CFR. Earlier this week, the offers stood at $487-495/mt CFR and $485/mt CFR was considered workable. “Not sure if anyone booked at low levels, but now for sure they [Turkish re-rollers] are going to wait,” a trading source told SteelOrbis, adding that the uptrend in ex-China HRC prices is most probably a temporary one.
In the meantime, domestic HRC offers have remained relatively stable at $580-590/mt ex-works/CFR Marmara and up to $600-605/mt ex-works/CFR from some producers. Most cargoes are available for October deliveries.
In the coated steel segment, hot dip galvanized (HDG) coils are available locally for 0.5 mm Z60-70 at $770-800/mt ex-works, with the same levels offered for export, but for Z100 material. Moreover, due to the challenging sales situation abroad, some re-rollers are eager to provide significant discounts in order to boost sales. Turkey’s PPGI is at around $900-930/mt ex-works in the local market and at $890-930/mt FOB for export.
Turkey’s cold rolled coil (CRC) is mainly available for both local and overseas buyers at $680-700/mt ex-works/FOB, while some re-rollers may offer slightly higher levels, aiming to destock.