Turkish hot-rolled coil (HRC) export offers nudged up once more this week as mills tried to gain ground in response to ArcelorMittal's €20/t push in Europe announced on 4 August.
Turkish exporters are currently in no rush to sell at the moment due to their extended lead times and expectations that shipment orders in the fourth quarter will net higher prices, according to market participants.
Argus' weekly domestic HRC assessment remained steady at $550/t ex-works. The export assessment increased by $5/t to $535/t fob, while the import assessment for S235 grades jumped by $7.50/t to $507.50/t cfr.
Offers from Turkey into Europe and north Africa were at $540-560/t fob for October and November shipment, depending on the product. One mill offered $560/t fob for November shipment, adding that $550/t fob could be negotiable. Other sources said that $540/t fob was the current floor for the market. Offers at $525-535/t fob were also heard, but without verification. Italian customers received €520-540/t cfr duty included, with buyer interest closer to the €500/t cfr duty included mark, equivalent to about $530/t fob. Deals into Egypt were heard concluded at $552/t cfr last week, with mills now firm at $560/t cfr. Trade on the whole remained slow as major European buyers were on holiday. A stronger euro to the dollar made Turkish offers more attractive this week, but this did little to reignite business.
Domestically, producers kept their prices firm at $550-560/t ex-works for October deliveries. Most buyers bought as prices were increasing. Business was done at $535-545/t ex-works weeks ago, and participants are now in wait-and-see mode, sources said. An Iskenderun-based producer was heard asking $550-555/t ex-works, while two more north suppliers offered at $560/t ex-works. The last active mill in the market offered $550-560/t cfr Marmara to customers. One pipemaker heard $545/t cfr Marmara available from the same mill, but without verification. Buying ideas and bids were heard in the low $540s/t ex-works, with buyers aiming to reconfirm booking prices from the start of July.
Chinese Q195 import offers were $510-525/t cfr this week, settling at $515-520/t cfr on 8 August. The offer range from China narrowed, possibly reflecting another attempt by Chinese government authorities to crack down on the non-value-added tax (VAT) loophole. One Egyptian mill asked $560-565/t cfr Turkey for October shipment, while next week a South Korean producer is expected to offer above the $520/t cfr mark. Offers via the Black Sea were reported at $510-520/t cfr for October shipment as a mill said it was negotiating contracts. One Baltic supplier said that its last deals were at $485/t cfr Mena, with its October shipment price yet to be shared with customers.
Argus' weekly Black Sea HRC assessment rose by $10/t to $495/t fob.
