Posted on 28 Jan 2019
Prices for hot rolled coil have increased in Turkey after producers raised offers to reflect higher scrap prices and slab offers, Kallanish learns from market sources.
Domestic offers increased to $$495-505/tonne this week, but buying remains limited amid fears of the ongoing poor economic climate and the subsequent low demand from re-rollers and processors, and end users. Some processors have made purchases, however, in view of low stocks and expected low availability, Kallanish hears.
Export offers have increased to around $500-510/t fob, although one producer was ready to reduce prices back to earlier, lower levels of around $480-490/t fob for large tonnages, traders say. Offers to Southern Europe are currently at €465-475/t cfr, but buyers are not interested, as stocks are at comfortably high levels and price direction remains relatively obscure.
Turkish export sales of flat products are not affected by new European quota regulations, which will support the country's export trade and output at sufficient levels. Russia’s Severstal is understood to have been planned maintenance for end of February/March, which will restrict availability and supporting prices. Ongoing stability in, and the relative strength of, the Chinese market is also instilling optimism among Turkish exporters, albeit that the domestic market situation remains weak, sources say.
