Following a week of holidays, the situation in the Turkish hot rolled coil (HRC) market has not changed for the better. Demand in the domestic market has remained insufficient, while buyers from Europe are insisting on discounts even though the recent safeguard adjustments were expected to boost demand for Turkish origin HRC. In addition, Chinese offers have declined significantly over the week, bringing the moods even further down. However, the buyers have not shown any interest.
In the domestic market, Turkish HRC official prices are mainly at $600/mt ex-works base for August deliveries, while before the holiday levels $10/mt higher were also on the table. The price of $590-595/mt ex-works is considered achievable at the moment, but most medium-size and large buyers do not seem to be ready to pay far above $580/mt ex-works.
Turkish HRC export prices are at $595-605/mt FOB officially for August shipments, although some parcels of July production are also said to be available. However, large buyers, according to sources, are bidding at $570-580/mt FOB tops, while smaller lots have been traded recently at $580-600/mt FOB.
Import offers from China have mainly been reported at $550-555/mt CFR this week with levels $5/mt higher also available. Before the holiday, Chinese suppliers were offering at $560-570/mt CFR, mainly for August shipments. Despite a price decrease, there does not appear to be takers in the Turkish market for Chinese material at the moment, SteelOrbis understands. However, some negotiations are underway and several transactions may be heard shortly, market players assume.