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Turkish HRC prices stay strong as HDG sheet offer prices rise

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Turkish HRC prices stay strong as HDG sheet offer prices rise

Dubai — While Turkish hot-rolled coil producers maintained strong prices amid higher raw material costs and low demand, mills raised cold-rolled coil and hot-dip galvanized sheet steel offer prices this week, sources told S&P Global Platts.

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"Galvanized mills raised prices around $10/mt around mid-week but market players don't believe the hike. Demand is still very weak. Meanwhile, with lower offers mainly from CIS mills, HRC producers can't raise prices. We heard HRC around $510-$520/mt, CRC at around $565-$580/mt and HDG at $625-$635/mt in the domestic market," one service center manager told Platts.

"We need to wait for more information about the market situation. It is not clear these days so we cannot comment on anything for sure," he added.

"Turkish buyers are paying higher prices for scrap. On the other hand, no drop in iron ore prices have strengthened HRC prices as well. I do not expect further increase since Corona issue is not yet clear," one HRC producer said.

"Mills are testing higher prices this week," a trader noted Friday, adding that HRC domestic prices ranged between $515/mt and $520/mt ex-works and CRC around $570-$580/mt ex-works.

Another trader told Platts that mills are pushing for higher prices in the export market. "They are asking a minimum of $510/mt FOB for hot-rolled coil at the moment," he said.

As mills maintained strong prices for HRC, HDG-producing mills raised offer prices. "Our mill has increased prices but we are waiting on more market information for next week," one executive at a coated coil manufacturer said.

"Domestic demand is not good but we are seeing good response from export markets, mainly Europe, CIS countries and Middle East. Our current offers are around $595-$600/mt for cold-rolled coil and $650-$655/mt for hot-dipped galvanized," he added.