Posted on 25 Feb 2019
Turkish hot rolled coil sales volumes retreated somewhat last week after prices rose sharply in mid-February on fresh restocking and cost-push factors.
Mills continued to indicate offers of 2mm thickness S235J material or equivalent at $550-570/tonne fob, depending on the origin, volume and destination, but buyers are pensive. These prices are above the levels viable for downstream buyers, even in higher paying European regions, market sources tell Kallanish. They note that Turkish mills "… have not sold a kilo," at these prices.
With one major supplier sold out until June, and southern and northern European prices on track for further gains, the two mills are likely to keep those offer levels this week. They still have end of April and May load-readiness material available as new enquiries continue to trickle in, and may be more willing to negotiate.
The new enquiries incoming from both southern Asia and southeast Asia, and solid spot and rising futures market in China, point towards a rebound in trade activity this week. It is however both the shortage of and the high price for of slab, which some of the mills have no option but to import, that is restricting some Turkish mills’ flexibility in HRC prices.
CIS-origin material may now only be available at a minimum of $510/t cfr, according to sources, for late April loading/early May arrival. The position with Brazilian material is no better, being at $525-530/t cfr, with much longer, June arrival, lead times.
