Following weeks of stability, local Turkish hot rolled coil (HRC) prices have softened and are expected to indicate a further slight weakening under pressure from buyers. The main reason is the continuing gradual decline of ex-China prices, which is the dominant import HRC supplier to Turkey. As for exports, Turkish mills have provided slight discounts, which are still considered not enough to trigger sales to their main markets, i.e., European countries.
In the domestic market, official HRC offers are at $620-640/mt ex-works, the same as last week. However, according to sources, $615/mt ex-works/CFR Marmara levels are possible if there is some serious demand. In the export segment, offers are at $585-600/mt ex-works, down $10/mt on the upper end over the past week. "Logically, the ex-Turkey HRC price should not be above $590/mt FOB, but even that is not workable in the EU at all," a producer told SteelOrbis. Others report that $575-590/mt FOB levels may be workable in Ukraine.
Import offers from China have decreased by $10/mt since earlier this week to $530-535/mt CFR base for 45,000 mt cargoes for December shipment, while $5/mt discounts are considered possible. The alternative HRC import offers are at much higher levels. In fact, India has been reported at $600/mt CFR, while South Korean material, which is subject to AD duty, has been at $585/mt CFR base. Both levels are unworkable in Turkey. In the meantime, the latest prices to Turkey from Egypt, which is a duty-free origin, have been at $620/mt CFR effective.