Turkish HRC exporters achieved some big sales after significant price
cuts. Now, the suppliers are trying to increase prices.
Two major Turkish producers were said to sell a total of around 120,000-130,000
t HRC to external markets. Sales to Europe (Italy, Spain, Portugal) were mostly
closed at $410-420/t FOB, base, while a contract to Canada was signed at a
higher level of $435/t FOB (20,000-25,000 t). There were also a few deals,
around 30,000-35,000 t in total volume, to Thailand at $430-435/t FOB, and a
sale to an Egyptian re-roller at $430/t FOB. The new range of deal prices to
foreign customers thus dropped $20-40/t compared with the beginning of the
month. Afterwards, the Turks, however, announced increases for late-April
production, bringing the offer prices to $430-440/t FOB. Yet, no contracts at
this new level were heard so far.
HRC export recovery was the first positive change in the market after a long
time of weakness. It could help Turkish mills reverse the downward trend.
Turkey's domestic HRC customers have been successfully pushing prices down for
a while now, given weak exports. "Now when very significant HRC volumes
were sold to export, producers will try to resist the further downturn," a
Marmara mill told Metal Expert. A seasonally stronger demand is also expected
to support suppliers in their upward attempts in March.
Source: metalexpert-group.com