Turkey doubles HRC exports to Italy

Turkish hot-rolled coil (HRC) exports increased in the first half of this year, underpinned by brisk sales to Italy.

Turkey exported 1.76mn t of HRC in January-June, up by 21pc compared with the same period last year, data from Turkish statistical institute TUIK show.

Exports to Italy in the first half of the year increased to 673,700t, up from 321,800t shipped in the same period in 2017, a 109pc increase.

The sharp rise was underpinned by two developments. Buyers rushed to procure material ahead of the European imposition of safeguards. And buyers were looking to Turkey as the EU levied anti-dumping duties on HRC originating from Russia, Ukraine, Brazil and Iran, from October 2017 onwards.

In the case of Italy, HRC supply to the domestic market had declined on the back of prolonged negotiations between the troubled Italian steelmaker Ilva and Luxembourg-based steel maker ArcelorMittal. Ilva has been operating well under its nameplate production capacity. Ilva is said to be working at around 50pc of capacity.

Spain was the second-largest recipient of Turkish HRC in the first six months of this year, taking 383,400t, up from 317,400t imported at same time last year. Belgium imported 130,500t of HRC from Turkey in the first half of this year, up by 40pc on the year.

Overall, Turkey exported 1.46mn t of HRC to the EU in the first six months of this year, up by 29pc compared with the first half of 2017.

Turkey increased its own imports of HRC as domestic buyers started opting for CIS-origin material. Turkey imported 2.32mn t of HRC in January-June, up from 2.17mn t at same time last year. Russian suppliers shipped 979,000t of material to Turkey in the first half of this year, down from 1.22mn t a year ago, while Ukrainian shipments increased by 64pc on the year to reach 312,000t.

Turkish offers into the EU and US have been competitive of late, but lengthening lead times are discouraging buyers. One large Turkish mill is offering 20 November shipment, which is unattractive for buyers.