The hot rolled steel export market in Turkey was supported by the return of Chinese demand: several sales were made in other directions, and the total volume of inquiries increased.
One factory had a high volume of sales by the end of last week, thus closing all placement volumes in September and with only small volumes left for domestic buyers, it said. Sales were to Southern Europe and North Africa, ranging from $ 430-443 /t in Turkey. The plant is also negotiating a sale to Asia with bids at a minimum price of US $ 430 /tonne. However, since it has a very limited distribution, the order can go to any other Turkish plant.
Requests come not only from China and ASEAN, but also from Africa and Europe. It is known that one plant sold a large lot to China, and the other sold at $ 410 /t per fob, which resulted in about $ 450 /t compared to China, although, depending on the volume, the cargo may be lower , traders note. Mill prices can be lower than other mills by $ 10-20 per ton, and some traders do not rule out a sale. However, some local sources claim they can sell “… at much higher prices in the domestic market.”
If the sale was made at the beginning of the week, there would be no way for the manufacturer to know what the domestic market would pick up to that extent. This explains his decision to sell at such a low price, says a local observer.
Demand in southern Europe is becoming more active, with factories demanding USD 425-435 /t depending on volume and destination. As news spreads about rising domestic prices in Europe, buyers are looking to get material before the quota expires this quarter. Northern European stock exchanges are also interested, but expect prices to decline, the sources say. Overall, price increases in Europe are still preliminary, which slows down reservations somewhat.
Demand for cold rolled coil products has been subdued as major consumer industries still struggle with weak demand for their products, which is trying to recover. Export prices remain at $ 490-495 /tonne for Turkey, with little inquiries and sales.