Turkish
hot rolled coil prices have firmed up this week in line with rising domestic
and imported scrap prices, amid a weakened lira. However, low-priced import HRC
offers continue to pressure mills’ quotations, industry sources told Platts
Wednesday.
Due to the rise in costs, local producers generally have begun to offer HRC at
$430-450/metric ton ex-works for July rollings, around $10/mt higher than last
week, while their export offers remained stable at $400-410/mt FOB, amidst
stiff CIS and Chinese competition in their main export markets.
“Cash problems, owing to the strengthened dollar against the Turkish lira,
continued to restrict the trade in the market. However, as the weakening trend
in the lira seems to be easing in recent days, our buyers raised their price
enquiries, but we cannot yet say that we have seen the light at the end of the
tunnel,” a service center executive said.
The general expectation in the Turkish flat product market is for a gradual
demand recovery in the coming weeks, with rising input costs and relatively low
stocks for some grades, as buyers are still cautious. The approaching general
elections and Ramadan in June may also limit this recovery, sources observed.
Low-priced imports from the CIS also still continued to put pressure on local
mills’ quotations. Ukrainian mills were offering HRC at $370-375/mt CFR
Wednesday, while Russian offers were at $375-380/mt CFR. However, cash problems
also continued to affect import bookings, market sources said.
Plats.com