As the gap between domestic mill and imported hot-rolled coil prices has remained high at around $100/mt and above in Turkey, the pressure on domestic mill prices has been ongoing.
No offers were heard from Indian suppliers this week, which sold significant tonnes to Turkey in the previous months with competitive prices, but offers from some Ukrainian and Indian suppliers were still in the range of $935-$950/mt CFR, depending on origin and tonnage, sources told S&P Global Platts Aug. 3.
Although slowed demand in domestic and export markets, due to holidays, has been putting pressure on Turkish mill quotations – in addition to low-priced import offers and lower imported scrap pricing – Turkish mills have been keeping their offers generally stable at $1,030-$1,060/mt EXW for November rollings, depending on producer and volume, as they were expecting demand to recover gradually as of September.
A possible Chinese HRC export tax could also determine the price direction in the coming months, some sources observed.
A Turkish HRC producer executive told Platts Aug. 3 that their HRC offers were stable on week at $1,050-$1,060/mt, with demand improving gradually.
Confirming that domestic producers’ overall HRC offers remained stable at $1,040-1,050/mt EXW, a manager of a Turkish pipe producer said they have been receiving HRC import offers at around $950/mt CFR.
“We are expecting prices to remain at these levels for a while. EU demand could revive following the holidays. If China will postpone output cuts, it could pressure prices. Chinese possible HRC export tax is also important for HRC pricing,” the manager observed.
A coated coil producer source told Platts Aug. 3 that domestic mills were keeping their HRC offer prices flat at around $1,040/mt EXW.
“Import offers from Ukraine and Russia were at $930-$950/mt CFR,” he said, noting that demand remained slow due to holidays. He is expecting August to be a slow month and demand to recover in September.
— Cenk Can