Turkish suppliers exhausting their sharply reduced EU quota for hot-rolled coil on the first day of the new allocation period has increased pressure on Turkish flat steel producers, Kallanish notes.
On 1 July, material awaiting allocation under Türkiye’s HRC quota (category 1.A) reached 229,564 tonnes, compared with a TRQ of 160,574t, exceeding the available volume by 68,990t, or 43%. The quota for metallic coated sheets (category 4.A) was also oversubscribed, exceeding the TRQ by 6,414t, or 10%.
Market participants say the immediate oversubscription of key flat steel quotas has increased uncertainty for Turkish exporters.
Turkish mills were heard offering HRC at $605-625/tonne ex-works in the domestic market, while export prices were reported at $595-615/t fob.
With Türkiye’s HRC quota effectively exhausted, some producers expect European HRC prices to strengthen. “Silence – awaiting price increases in the EU by €120-130/t,” was one Turkish producer’s description of market sentiment. Overseas buyers are targeting much lower prices of $565-570/t fob, he adds.
One trader says the market expects Turkish HRC prices to decline by a further $20-30/t before stabilising, with participants preferring to wait for a clearer indication of demand.
On the import side, HRC from China and Vietnam was heard offered at around $540/t cfr Türkiye.
Author: Elina Virchenko
