As of 14 August, Turkey has used 58% of its EU tariff-rate quota (TRQ) for hot rolled coil in the third quarter, with 7,879 tonnes awaiting allocation. This means Turkey can still supply 199,381t from its total 475,174t TRQ by 30 September, Kallanish notes from the EU Taric portal.
Last week, prior to the EU’s anti-dumping investigation initiation, unverified reports suggested that Turkish HRC was available at $550/tonne fob Turkey. However, following news of the probe, Turkish mills were reevaluating the market, particularly in the export sector, hoping to regain market share lost to Asian and North African suppliers in the EU. October shipments were traded, but the market remained in a holiday-induced lull across the bloc.
Domestically, Turkish HRC prices were reported in a wide range of $575-610/t ex-works. Although the AD proceedings were seen as favourable, they were overshadowed by aggressive offers from China, which are nearing the psychological barrier of $500/t cfr Turkey.
Current offers of HRC from China are at $505/t cfr for September shipments, with October arrival in Turkey, and some believe that $495-500/t cfr is also achievable. However, with prices falling and holidays ongoing, many in Turkey believe there will be little interest in purchasing until the market bottoms out.
Elina Virchenko UAE
