Posted on 22 Jan 2019
Turkish hot and cold rolled coil producers are attempting to raise prices as product availability shrinks due to current and future planned equipment maintenance, Kallanish hears.
HRC offers to the domestic market are in the range $490-500/tonne exw, but lower levels are not being ruled out for larger tonnages and other favourable buying terms, including longer lead-times, sources say.
Demand remains subdued, but has tentatively improved compared to December, at least in terms of the volumes of enquiries. This is despite ongoing pressure from a tangible lack of demand, which many participants expect to improve after the global market gains momentum in the wake of Chinese lunar new year celebrations. These, however, are sentimental rather than fundamental factors, others argue, pointing to the breakdown of the majority of geographical and seasonal international trade patterns in the last couple of years.
Turkish mills continue to rely on export markets, where their offers range from $480-500/t fob depending on the mill. Some of Turkey's buying markets have become saturated with material, sources suggest. In southern Europe, Turkish HRC S235JR of 2mm thickness is offered at €450/t cfr, traders say, and this is failing to gain much traction. But Turkish mills still have some monthly orders which they will continue to fulfil and which will keep them ticking over from month-to-month, traders remind.
Import offers of HRC are ranging around $470-480/t cfr, but considering sales by a CIS producer at $455/t cfr earlier this month, this price range is not attracting buyers. A Russia producer has sold some tonnages at $455-465/t cfr for various sized hot rolled coil, to its subsidiary in the south of the country, a source reveals.
