Turkey’s hot rolled coil export market livened up last week with small sales to Europe and a larger one to the US, which has finally re-opened for Turkish sellers following multiple price increases.
A mill sold a 15,000-tonne May-loading consignment to the US through its trading arm at a netback price of around $785/tonne fob Turkey, a close source confirms, and expects to sell more this week. Smaller lots were contracted to Europe and North Africa, all below 3,000t, However, with grade and quantity extras the price was unrepresentative of the spot market, Kallanish notes.
Although demand remains lacklustre, Turkish mills are not reducing offers below $760/t fob, which is offered by just one mill, with others indicating $20-30/t higher prices. The material is mainly for mid-May loading, with only some tonnages available a couple of weeks earlier. With anti-dumping duty added, and long lead times, however, offers should be at $730-740/t fob to woo European customers, according to one trader, while others calculate a much lower price, as compared to Asian imports.
Non-European bids are also down, to the equivalent of $700-720/t fob Turkey, as competing CIS and Asian material, and the ongoing price downtrend are repelling buyers. CIS material is offered at $710/t fob Black Sea minimum, but buyers are expected to haggle. Sales to Egypt are expected, as these levels are below domestic offers and deemed workable by observers.