Downward price pressure on Turkish HRC persists

As price pressure on Turkish mills' HRC prices continued amid slow demand both in the domestic and export markets, and lower imported scrap pricing, offer prices have softened in recent days. Mills however, have been still trying to keep their offer prices above $1,000/mt EXW, sources told Platts Aug. 11.

Although a service center manager told Platts that a major mill has begun to offer HRC to the domestic market as low as $980/mt EXW as of Aug. 10, a manager of the producer in question denied this information, saying their offers were in the range of $1,010-$1,020/mt ex-works this week.

Another large producer executive told Platts Aug. 11 that they have recently closed their order books for October. "Our price for November is not certain yet. But, I also heard the $1,010-$1,020 mt ex-works range in the domestic market," he said.

Confirming that $1,010 mt EXW is currently available in the market, a manager of another HRC producer manager said their HRC price is currently higher, which could not be taken as a base price.

Turkish producers have been maintaining their offers over $1,000/mt EXW, in expectation of a market recovery as of September, sources said, adding that a large producer's possible maintenance break in November could also support prices, as mills have generally closed their order books for October rollings.

"A producer is currently offering HRC to the domestic market at $1,000-$1,020 mt EXW. Two other producers' offers remained still higher at $1,040-$1,050/mt EXW this week," a pipe producer executive told Platts Aug. 11, adding that Indian and Russian suppliers' offers have been in the range of $950-$960/mt CFR, while Ukrainian mills' offers for small coils were slightly lower.

"The market is currently silent and we are planning to wait and see the market direction before making any booking," the manager said.