Sentiment-driven buying in response to the recent surge in Turkish hot-rolled coil (HRC) prices inspired by bullish import offers has helped domestic mills fill up a good share of their September orderbooks.
Market participants expect this uptick in purchasing to simmer down fairly quickly in the coming weeks. Furthermore, some highlighted that mills are having an easier time filling their September books due to scheduled maintenance outages.
Argus' weekly domestic HRC assessment remained steady at $545/t ex-works. The export assessment increased by $5/t to $520/t fob, while the import assessment for S235-grades jumped by $15/t to $495/t cfr.
Locally, mills started offers between $550/t and $560/t ex-works, with one producer indicating $570-580/t. In negotiation, discounts were heard available but for the most part, mills tried to remain firm. Several deals were reported at $545-550/t ex-works for medium-sized tonnages. One pipe maker confirmed $545/t ex-works from two different producers, while a service centre booked at $550/t ex-works. One Iskenderun-based mill was selling at $540-550/t ex-works, while a close competitor offered $540-550/t cfr Marmara. A third supplier started offers at $560/t ex-works with $550/t possible in negotiation. The same producer plans to conduct a month-long maintenance at its site, which will start on 15 September.
Deliveries in the domestic market are for the end of September, with one mill indicating October. On Thursday, the Turkish central bank announced a 3pc interest rate cut to 43pc, in line with market expectations.
Import offers from China continued their climb this week as bullish traders tabled $495-510/t cfr for Q195 grades, for September shipment. Turkish buyers largely remained on the sidelines waiting to see where prices settle. Via Egypt, a string of transactions totalling about 15,000t were closed at $545-550/t cfr Turkey. Taiwanese coil was also in the market at $530/t cfr, with no buying heard. At the start of the week, a mill operating out of the Black Sea said it was in negotiation for its last September shipments at $490/t cfr Turkey. A Baltic producer said after sales last week at $470-475/t cfr Mena, no deals were collected at higher offers of $485-490/t cfr.
Argus' weekly Black Sea HRC assessment rose by $5/t to $465/t fob.
Export offers this week were heard at $525-540/t fob for September shipment. Some mills have notified customers that some August and September shipment orders might only clear 1 October, as Turkey's EU HRC quota nears exhaustion. One source said an Italian buyer booked 10,000t at $525/t fob, but this was unverified. Last week a Greek buyer confirmed a price of $545/t cfr duty excluded, adding that attempts had been made to negotiate the same level after a $20/t increase. Into Italy, €500-510/t cfr duty included was reported, equivalent to about $530-540/t fob, while into Antwerp, $610/t cif was available. Mills generally started offers at around $530-540/t fob, willing to provide some discounts for the right volumes. India closed deals into the EU this week at €490/t cfr.
